Overview
- HSBC Asset Management says 2025 marked a decisive global turn toward higher tariffs that disrupted supply chains and reshaped trade behavior.
- The analysis highlights a fragmented trade architecture as bilateral deals proliferate and each country’s relationship with the United States gains outsized importance.
- HSBC says 2026 could be the first full year when tariff impacts become visibly embedded in economic data across markets and asset classes.
- For India, the firm flags a negative tariff surprise in H2 2025 with the rupee down about 4.2% since July 1 and pressures showing in trade and balance‑of‑payments figures.
- The report notes RBI liquidity management challenges and maintains that domestic fundamentals remain strong, while uncertainty over a favorable US trade deal persists.