Trump's tariffs could reduce India's GDP by 0.5% to 0.6%.

South Korean media: "Trump tariffs could reduce India's GDP by 0.5%!"

On September 9, South Korean media outlet "Today's Finance" published an article stating that there are predictions that the 50% high tariff recently imposed by US President Donald Trump on India for importing Russian crude oil is expected to reduce India's gross domestic product (GDP) by up to 0.6% in this fiscal year (which starts in April 2025).

Recently, Anantha Nageswaran, Chief Economic Advisor of the Indian Ministry of Finance, said in an interview with Bloomberg Television, "We hope the additional sanctions on Russian crude oil imports will end as soon as possible. Although the additional tariffs depend on how long they last during this fiscal year, India's GDP will decrease by 0.5% to 0.6%."

He added that if the US continues to impose such high tariffs in the next fiscal year, the impact would be even greater, posing significant risks to India.

Previously, the Trump administration, on top of the 25% reciprocal tariff, added a 25% punitive tariff on imports of Russian crude oil, and started imposing a 50% reciprocal tariff on India from the 27th of last month. This high tariff rate is the highest in Asia.

The United States is India's largest export market, and the tariff is expected to severely hit India's labor-intensive industries, especially the textile and jewelry sectors.

Nageswaran stated that the government will maintain its previous forecast for India's fiscal year GDP growth rate of 6.3% to 6.8%, citing strong economic performance in the first three months since April.

He also explained that the Indian government recently reduced the consumption tax, and the inflation rate is at its lowest level in eight years, which is expected to boost the Indian economy, increase disposable income and consumption.

Trump recently said that there is nothing to worry about in US-India relations.

However, India and the United States seem to still be at an impasse on some key issues between the two countries, such as India's import of crude oil from Russia.

Indian Finance Minister Nirmala Sitharaman said in an interview with local media that despite pressure from President Trump to stop importing Russian crude oil, India will continue to import crude oil from Russia.

Original: www.toutiao.com/article/1842789895942154/

Statement: The article represents the views of the author.