US President Donald Trump's tariffs have been a central point of discussion in global trade, particularly with countries like India and China. Here's a breakdown of the current situation:
*US-India Trade Relations*
- The US imposed 50% tariffs on Indian goods, citing Russia-related issues and trade imbalances. - India expects a trade deal with the US by the end of the year, with most issues already ironed out. - The tariffs have impacted Indian exports, particularly in sectors like textiles, apparel, leather, gems, and jewelry
*Impact on Indian Economy*
- The Reserve Bank of India (RBI) governor believes the impact of Trump's tariffs on the Indian economy is "minimal." - India's exports to the US have declined significantly, but the domestic demand-driven economy is expected to emerge stronger. - The RBI has cut the repo rate to boost liquidity and growth
*Global Trade Implications*
- The Organisation for Economic Co-operation and Development (OECD) warns that tariffs could test global growth resilience. - The US economy is forecast to grow 2% in 2025, with AI investment and fiscal support offsetting tariff drags. - China's growth is expected to hold steady at 5% in 2025, but may slow down in 2026 due to US tariffs
*Potential Relief for Indian Exporters*
- The US might roll back tariffs as part of a trade deal with India, benefiting Indian exporters. - Indian companies like Coforge, Gokaldas Exports, and Balkrishna Industries could see significant benefits from a trade agreement $ETH $BTC
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