WSJ What’s News – August 27, 2025

Episode: "What Trump’s India Tariffs Mean for Global Trade"

Host: Azhar Sucri
Guest(s): Tripti Lahiri (WSJ South Asia Bureau Chief), Jinju Lee (WSJ "Heard on the Street" Columnist)

Episode Overview

This episode explores the consequences of President Trump’s newly enacted, steep tariffs on Indian goods, delving into their impact on India’s export-focused industries, the global supply chain, and the broader context of US-India trade negotiations. The episode also touches on Trump's move to replace Fed Governor Lisa Cook, the ongoing shake-up in US subsidies for renewable energy, and other business headlines.

Key Discussion Points & Insights

1. Trump’s Move to Replace Fed Governor Lisa Cook

• [01:01] President Trump aims to oust Fed Governor Lisa Cook and quickly announce a replacement.
  • Top contenders: Stephen Myron (Trump’s economic adviser and prior Fed nominee), David Malpass (former World Bank President, Trump ally, and Fed critic).
  • Lisa Cook objects, arguing Trump lacks authority and hinting at legal action.
  • Quick court battles may ensue.

2. US Tariffs on Indian Goods: What Happened and Why

• [01:39] Background: Initial 25% tariffs were established in early August due to stalled trade negotiations; a further 25% was added due to India's Russian oil purchases, totalling 50%.
• [02:50] Tripti Lahiri: Indian businesses believed closer US relations under Trump would benefit them, especially as companies pursued a “China plus one” strategy.
  • Optimism faded due to unresolved trade talks and unrelated political disputes (e.g., US-India disagreement over ceasefire negotiations with Pakistan).
  • Quote:

    “Everybody had looked at Trump’s presidency as being a good thing for India, that he would focus his trade war on China... but a lot of things happened... There may have also been fallout from the India-Pakistan conflict.”
    — Tripti Lahiri [02:50]

3. Tariffs’ Economic Impact on India and Global Supply Chains

• [03:52] Which goods get hit?
  • Labor-intensive exports hardest hit: apparel, shrimp, rough diamonds, leather shoes, carpets.
  • “Roughly 2/3 of India’s $90B of exports to the US now subject to the 50% tariff.”
    • Exports could drop by $30–40 billion—a major blow to India.
  • Quote:

    “What’s particularly concerning for India is that... a lot of those exports are focused in areas that are kind of labor intensive... one estimate is the exports to the US drop by 30 or $40 billion and that’s going to be a big hit.”
    — Tripti Lahiri [04:00, 04:35]

• [04:45] Global ripple effects:
  • Multinational manufacturers weighing whether it’s worth shifting supply chains to India.
  • Smaller or tentative firms may abandon plans to move out of China because the tariff advantage fades.
  • Regional rivals like Bangladesh and Vietnam may benefit (apparel tariffs only ~20%).
  • Not all sectors are affected: Pharmaceuticals, electronics (e.g., Apple iPhones), and services (IT/finance) are largely exempt from tariffs.
  • Quote:

    “There are lots of exemptions... pharmaceuticals, electronics… Apple has shifted lots of iPhone assembly work to India and that is not going to be affected. And the last thing that isn’t affected is services in general.”
    — Tripti Lahiri [05:42]

  • The measure primarily targets goods, not services.

4. Renewable Energy Subsidy Rollback

• [07:09] Trump's rollbacks leave wind and solar stocks lagging behind fossil fuel competitors.
• [07:54] Jinju Lee: Despite short-term pain, mature renewables industry can compete without subsidies, and scrapping complex tax credits could simplify investment.
  • Quote:

    “Getting rid of that subsidy structure might actually make the financing process for solar and wind easier and more straightforward... and possibly even open up more investors.”
    — Jinju Lee [08:10]

• [08:34] Short-term forecast: 23% fewer new wind, solar, and storage installations through 2030 (Bloomberg NEF).
• [08:52] Long-term prospect remains positive due to rising electricity demand (AI, electrification of transport/buildings).
  • Renewables’ edge: Fast project timelines.
  • Quote:

    “Electricity demand is starting to rise for the first time in a while... The distinct advantage that solar and wind have is that they take a shorter time to build.”
    — Jinju Lee [08:52]

5. Quick Business Headlines

• [09:26] ExxonMobil held secret talks with Russia’s Rosneft about reviving a major oil project if a Ukraine peace deal is reached and both governments agree.
• [09:56] SpaceX successfully test-launched the Starship rocket after setbacks, deploying dummy Starlink satellites.

Memorable Quotes & Moments

• Tripti Lahiri on Indian business reaction:

  “Many Indian businesses are asking… everybody had looked at Trump’s presidency as being a good thing for India, that he would focus his trade war on China and US-India ties would improve...”
  — [02:50]

• Tripti Lahiri on labor-intensive sectors:

  “So it could be apparel manufacturing, it could be shrimp farms, it could be finishing rough diamonds, making leather shoes and carpet weaving...”
  — [04:00]

• Jinju Lee on renewables becoming more resilient:

  “Wind and solar are no longer the new technologies… they’ve been competitive with natural gas… getting rid of that subsidy structure might actually make the financing process for solar and wind easier...”
  — [07:54, 08:10]

Most Important Timestamps

• [01:01] Trump seeks a new Fed nominee, legal standoff with Lisa Cook
• [02:50–06:19] Deep dive: Why the US-India trade deal failed, who is hurt by the tariffs, supply chain impacts
• [07:09–09:26] Columnist Jinju Lee on the renewables market without subsidies
• [09:26–09:56] Quick takes: ExxonMobil’s secret Russia talks, SpaceX Starship launch

Tone & Language

The episode maintains WSJ’s characteristic analytical and factual tone, with direct commentary from experts. The reporting is clear, precise, and business-focused, conveying both immediate consequences and broader context with neutrality and detail.

For listeners or readers, this episode offers a concise yet comprehensive analysis of Trump’s India trade tariffs, their domestic and international impact, and what it signals for global manufacturers and energy markets.