US Tariff Policies
The United States, under current leadership, has implemented significant tariffs impacting various countries, with India among the affected nations. This document outlines the broader implications of these tariffs and their effects on global trade dynamics.
Impact on India
- India faces a 25% tariff, plus an additional 25% penalty for importing oil from Russia.
- Upcoming punitive tariffs on all pharmaceutical exports to the US, impacting Indian pharma companies.
- President Trump criticized India as a "dead economy" and suggested potential oil trade between Pakistan and India.
Reactions and Compliance
Despite predictions of a trade war and global economic downturn, many nations have complied with the tariffs:
- Countries like the UK, Japan, and several Southeast Asian nations signed unequal trade deals with the US.
- The EU conceded to a trade deal with a 15% tariff on exports to the US, alongside commitments to purchase US energy and invest in the US.
Economic Outcomes
- Contrary to fears, the global economy has not seen the predicted downturn:
- The IMF increased its 2025 global economic growth forecast to 3%.
- The US economy's forecast was revised upwards to 1.9% growth.
- US equity markets remain high, and bond yields have stabilized.
- Factors for this stability include:
- Efficient supply chains and resilient economies.
- Stable oil prices with Brent crude at $8 below the previous year.
- Adaptability of firms and governments to economic shocks.
