US tariffs have thrown Indian businesses into uncertainty: Amit Mitra

Mitra’s post outlined what he described as successive US moves: invocation of emergency trade powers and the levying of reciprocal tariffs, penalties for purchases of Russian oil that he said translated into further tariff pressure on India, and the use of Section 232 of the US Trade Expansion Act of 1962 to impose steep duties on steel and aluminium. He also said the US administration had signalled plans for a 100 percent tariff on branded and patented drugs exported to the US, a step he said would hit multinational pharmaceutical manufactures that export from India.

“Now, by invoking ‘national security,’ the (US) commander-in-chief announced his intent to impose a 100 per cent tariff on pharma, branded and patented drugs,” Mitra wrote, adding that the move appeared aimed at large global players such as Pfizer. He claimed that Pfizer had responded by offering discounted medicines via a US government portal, a development he cited as evidence of how disruptive the tariffs could be.

Mitra warned that the cumulative effect of these measures would leave Indian exporters, MSME supply chains and “millions of workers in labour-intensive exports” in limbo. He was sharply critical of the central government’s handling of the situation, saying New Delhi was still “discussing schemes” and drafting rules while failing to provide strategic leadership. “A tragic failure of the Central Govt. leadership in many dimensions ??” he posted.

The economic adviser framed his critique in classical terms, drawing on Keynes to argue that policy must reduce uncertainty if markets are to function. His post sought immediate policy responses and greater clarity to reassure exporters and stabilise the fragile global value chains on which many Indian firms depend.

Mitra’s remarks add to a chorus of concern expressed by industry bodies and state governments over the potential impact of sudden trade measures on exports, investment and jobs. The issue is likely to intensify debate over diplomatic and trade responses as exporters and policymakers seek clarity on how to protect commerce and livelihoods in an increasingly uncertain global trading environment.