Blackstone’s CEO sees the good thing about Trump tariffs, confident on India’s growth

Blackstone chairman and CEO Stephen Schwarzman believes the new US tariff regime has the potential to boost growth and strengthen American consumption demand by attracting foreign investment. Speaking during his visit to India to mark Blackstone’s 20th anniversary in the country, Schwarzman discussed global trade, US policy, and India’s economic prospects.

Addressing concerns about the impact of reciprocal tariffs on the US economy, he said that while input costs for American businesses may rise, the policy is already stimulating large-scale inbound investments.

He pointed out that for over two decades, the US manufacturing base had shrunk as businesses moved to lower-cost locations. However, the tariff strategy, coupled with lower corporate tax rates, could encourage foreign companies to establish operations in the US, potentially allowing them to avoid tariffs while benefiting from tax incentives.

He suggested that with the right influx of capital and expertise, the US economy could see a positive shift.

Schwarzman said it was still too early to determine the full impact of the policy, but he anticipated a significant rise in US manufacturing activity, which could drive economic growth. If the US economy expands faster, it could have wider global benefits, including higher consumption levels.

He added that the US aims to establish individual tariff agreements with major countries, ensuring trade balances are determined by product quality and cost rather than artificial barriers.

On India’s position in trade negotiations, he said the country was in a favourable position. He noted that very few nations had received similar treatment, and India had already made adjustments.