Some part of US tariffs here to stay: Tata Sons chairman Chandrasekaran

Tata Sons chairman N Chandrasekaran on Tuesday said he feels some part of the tariffs imposed by the US is bound to stay.

Making it clear that the problem at present is not the tariffs, Chandrasekaran said the issues stem from the upending of an over six-decade old model that the world had got used to.

Globalization ensured that goods are produced where it is cheap or efficient to produce them, and sold where there is a demand, he explained.

Chandrasekaran said supply chains are integrated and things cannot change overnight as there are issues such as talent and raw materials sourcing that countries have to grapple with.

“I personally believe it (tariffs) is not going to go back to zero because once something is announced, some part of it will stay,” he said, speaking at an event here late this evening.

“..where it settles, whether it settles uniformly across countries, or it all gets solved bilaterally only, that we will see,” he added.

The Tata group is building seven new factories in new areas including electric vehicles, batteries and semi conductors which will open by 2027, he said, adding that they will employ five lakh people.