Brief by Shorts91 Newsdesk / 05:53pm on 30 Aug 2025,Saturday India Global
Trump's 50% tariffs on India threaten $45 billion in exports, potentially reducing GDP growth by 60-80 basis points. India faces higher duties than competitors: China (30%), Vietnam (20%), Indonesia (19%), Japan (15%), making Indian products less competitive. Economists advise against reciprocal tariffs, citing India's $140 billion IT services dependence on the US market. SBI Research estimates US GDP could drop 40-50 basis points from tariff impacts. Analysts recommend diplomatic solutions over retaliation, suggesting strengthened domestic demand and aggressive free trade agreements with UK, UAE. India's punitive 25% duties stem from Russian crude purchases. Experts propose targeted, symbolic responses on politically sensitive US products while avoiding full-scale trade war escalation. (PC: Bloomberg & The New York Times)
