According to S&P Global Ratings, the new tariffs announced by US President Donald Trump will not hurt India’s economic growth. This is because India’s economy does not depend heavily on exports and international trade.
Last year in May, S&P had upgraded India’s sovereign rating outlook from ‘BBB-’ to positive, pointing to the country’s strong economic growth.
On August 6, President Trump announced an extra 25% tariff on all Indian imports to the US, in addition to the already existing 25% duty. This means the total tariff will now be 50%, starting from August 27.
Read more: US Extends China Tariff Truce by 90 Days; Possible Trump–Xi Meeting Ahead
YeeFarn Phua, Director at S&P Global Ratings, explained that India’s exposure to the US market is small. Exports to the US make up only about 2% of India’s GDP, so the higher tariffs are unlikely to slow down the country’s growth.
Also See: US Tariff Hike Shatters Gujarat’s Diamond Industry, 1 Lakh Jobs Gone…
