America’s effective tariff on Indian goods increased from 2.4% to 20.7%, knowing the impact
us President Donald Trump has announced a 25 percent tariff on India. This decision of Trump will affect about half of Indian business exported to America. According to Fitch Ratings, due to an increase of 18.3 percent this year, the US effective tariff rate on Indian goods will be 20.7% in 2025, which was 2.4% in 2024. This increase in tariffs by the US also poses some negative impact on India’s economic growth.
Announcement of separate fine for trade with Russia
On Monday, Fitch said that overall, the US’s effective tariff rate is now 17%, which is about 8 percent less than an estimate of April 3, when high mutual tariffs were originally announced. Last week, Donald Trump announced a 25% tariff on Indian goods as well as a separate fine for trade with Russia.
Goldman sex reduced economic development
Goldman Sachs on Monday reduced India’s economic growth estimate due to the US tariff to 6.5% for 2025 and 6.4% for 2026. Goldman Sachs added, “We think, some of these tariffs can be negotiated over time and further and negative risk on the path of development arise primarily uncertainty.”
What is the idea of Moody’s on imposing 25 percent tariff on India
According to HDFC Bank, there is a negative risk of 20-25 basis points in India’s GDP growth from tariffs. Christian D Guzman, Senior Vice President of Moody’s Ratings, said, “Limited to the world’s largest economy reduces the possibilities of India’s ambitions to develop India’s own manufacturing sector, especially high-value-addicted sectors, especially electronics. India’s economy is expected to remain flexible as it is less dependent on trade than other big economies of Asia-Practices.”
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