An Impact of Tariff War: A Statistical Approach on Indian Economies

Abstract

Purpose: Attacking any country with missiles and rockets is not called war, but causing harm to the economy of that country is also called war. In this way, The President Mr. Trump has affected the economy of other countries by increasing tariffs on all countries in his second term, we can call it a tariff war. Through this research, we study the impact of tariffs on India's economy in Import & Export Businesses and how to avoid it. Methods: The study is to use primary data, with a sample size of 200 respondents selected through simple random sampling techniques. The researcher adopted a descriptive research design. This design is most suitable because the main goal is to describe the existing strategies and observed impacts of the trade shifts in 2025-26 without necessarily establishing a causal link. The researcher adopted two approaches, i.e, Approach: A mixed-methods approach, combining quantitative data (trade volumes, tariff rates) with qualitative insights (expert interviews, strategic frameworks). Time Horizon: Cross-sectional, focusing specifically on the period starting October 2025 through the current fiscal year (2026). Results: The study ultimately underscores the increasing importance of global integration, economic policy stability, and strategic trade positioning, while also highlighting the necessity to strengthen domestic manufacturing and employment structures to achieve balanced and sustainable outcomes. Conclusion: the study emphasizes that sustainable economic progress depends on a synergistic approach, where strong macroeconomic fundamentals and external trade performance are complemented by a resilient and employment-generating manufacturing sector. Bridging this gap is essential for achieving long-term stability, competitiveness, and inclusive growth.