With US tariffs implemented, India's economy faces potential challenges. This article breaks down the sectors most at risk and the possible economic impact,
keeping you informed on this evolving situation.
Tariffs' Economic Impact
US tariffs could lead to a decrease in US GDP by 40-50 basis points, simultaneously pushing inflation upwards. Import-sensitive sectors like electronics, automobiles, and consumer durables are expected to feel the immediate effects. The situation is complex and has significant implications.
Sectors Under Pressure
Several key sectors in India are vulnerable. Electronics, automobiles, and consumer durables are particularly exposed to the tariffs' consequences. These industries might face import challenges, impacting both production and pricing. It is a wait-and-watch situation for them.
Diplomatic Angle & Tension
The situation includes diplomatic tensions, with PM Modi reportedly avoiding calls from Trump during the tariff discussions. Trump’s warnings to India further heightened the seriousness of the situation. These events added a layer of complexity.
Future Economic Outlook
US inflation is anticipated to remain above 2% until 2026 due to tariffs and exchange rate influences. The ongoing trade dynamics present significant challenges and opportunities for Indian businesses and the economy. Further developments are needed.
Visa & Immigration Issues
Beyond trade, there are implications for Indian citizens. The Trump administration reviewed 55 million US visa holders for possible deportation violations. Also, there are reports of visa pauses impacting foreign truck drivers after an incident involving an Indian man.
