Four sources told Reuters, citing a government internal assessment report, that President Donald Trump’s 25% tariff plus an expected 10% penalty for purchasing Russian oil will cause India to lose a competitive edge in roughly $64 billion worth of commodities sold to the US.
Trump placed the highest duties among Asian peers on commodities imported from India, even before any penalty was issued, resulting in India’s most severe diplomatic crisis with the United States in years.
The immediate impact on GDP is estimated to be limited to 40 basis points due to the comparatively small export contribution in India’s $4 trillion economy.
The Reserve Bank of India maintained its 6.5% GDP growth prediction for the current April–March fiscal year.
