Foreign investment from the U.S. is set to increase in India despite trade tensions and tariff negotiations, said John E Drew, Chairman of World Trade Centers Association (WTCA), a New York-based organisation that issues license for constructing World Trade Centers (WTCs) across the world. Tech giant Apple Inc. will continue investing in the country and grow its business though there is tariff threat from U.S. President Donald Trump, he told Fortune India in a video interaction.

The political ties between India and the U.S. are strong and are expected to strengthen further, with similar positive relations existing between India and the EU, he said. “While there may be some short-term challenges, such as higher product costs due to tariffs and industry-specific impacts, overall business and investment flows will continue to grow. Notably, increased foreign investment, especially from the U.S. into India, is expected,” Drew noted. He also said that India would benefit from incoming overall foreign investment as well as by growing its global trade footprint as the world economy stabilises.

While talking about U.S. President Donald Trump’s defiance to Apple’s investments in India, Drew said that the tech giant’s expansion in India will continue and it is set to grow, contributing to new opportunities and growth in the Indian market. Trump recently warned Apple that it would face tariffs for the products made in India when selling it in the U.S. He threatened all smartphone makers with 25% tariff unless their devices are not built in the U.S.

The global trade environment is currently marked by uncertainty, largely due to unresolved negotiations and trade-related complexities, he noted. "This lack of clarity has created a sense of hesitancy among businesses, slowing down international trade and investment activity," said Drew. However, India is actively engaging in trade diplomacy, having finalised a trade agreement with the UK and currently negotiating a deal with the EU, he said. "These steps indicate India’s strategic intent to integrate more deeply into global markets," he added.

While the uncertainty persists, there is optimism that many of these issues will begin to resolve over the coming months, observed Drew. “Once resolved, it is expected that businesses will regain confidence, potentially leading to a significant resurgence in international trade by the second half of the year. However, a full return to pre-crisis trade dynamics may take an additional year,” he noted.

The trade tensions and tariff adjustments present short-term challenges; however, they are also paving the way for long-term gains, said Drew. "With solid fundamentals and proactive economic approach, India is well-placed to emerge as a key hub in the evolving global trade and manufacturing landscape," he added.

Drew believes that the tariffs will eventually stabilse as countries negotiate specific agreements tailored to their unique relationships—such as between the US and India, the US and China, and the US and the EU. “The US-India relationship is expected to strengthen and deepen over time, supported by India’s talent and business appeal. While the China situation involves broader geopolitical complexities beyond trade, tariffs themselves will likely settle, with businesses adapting to costs and consumers possibly facing higher prices for some products over the next few years,” he said.

“Tariffs are not new—they’ve long been a part of the global trade landscape. What’s changing today is the intensity and scope of these tariffs, with some markets like the U.S. introducing higher and more targeted duties. While businesses have historically navigated tariffs, what’s creating friction now is the uncertainty about how these costs will evolve and what impact they will have on consumer prices, particularly in sectors like home goods, textiles, and everyday essentials.

With the rising business opportunities in India, Drew wants to increase awarding World Trade Center (WTC) licenses in the country to 50 in the next 5-10 years from 30 at present. The license allows the real estate developers to build multiple WTCs. “Indian WTC members—particularly in Chennai, Mumbai, and Bengaluru—have demonstrated exceptional leadership, collaboration, and support for one another, setting a strong example within the global network.” he said.