With over 18 years in Surat’s dynamic real estate landscape, I’ve seen the sector navigate everything from demonetization to global pandemics. Now, we stand before a new form of uncertainty — not domestic, but global. Former U.S. President Donald Trump’s announcement of a 26% tariff on Indian imports sent ripples across industries. While that decision is currently on pause for 90 days, it’s a moment that warrants reflection, particularly for real estate professionals.

At face value, one might argue — and rightly so — that Indian real estate does not depend on imports from the United States. Our materials primarily come from China, Italy, Turkey, and Southeast Asia, not the U.S. So, why should a tariff imposed by America affect us?

The answer lies not in direct trade, but in systemic impact.

When a global superpower imposes or even threatens such high tariffs, it disrupts trade equilibrium. If India retaliates with counter-measures, that can indirectly affect its ongoing trade relationships, including freight routes, customs policies, and cost inflations with other key suppliers like China. Even a small hitch in logistics or shipping costs can lead to material delays and cost escalations — especially in large-scale or premium projects where imported finishings and systems are the norm.

Additionally, such geopolitical tensions often trigger currency volatility. A weakening rupee, as we’ve often seen during periods of global uncertainty, makes all imports — regardless of origin — more expensive. This increase in input costs is passed either to the developer or, eventually, to the buyer. In both cases, it creates strain in a price-sensitive market.

Let’s not forget the NRI buyer base, a major contributor to urban residential and commercial demand. If the U.S. economy dips or uncertainty looms over job security in tech and finance sectors, NRI investments into Indian real estate tend to shrink — especially in cities like Surat that have growing interest from the global diaspora.

The 90-day pause by Trump is not a breather — it’s a strategic window. It gives India and its industries a chance to prepare, adapt, and insulate themselves. For real estate players, that means exploring local alternatives, optimizing procurement pipelines, and staying financially agile.

As someone deeply rooted in this business, I believe foresight matters just as much as foundation. And today, the real estate industry must look beyond borders to brace for what lies ahead.