Overview

• President Trump’s executive order reinstated reciprocal tariffs of 10–50%, driving the US effective import tax to around 17%–18%.
• Fitch Ratings reports that India now faces a 20.7% effective tariff, including a 25% base levy plus potential penalties tied to its energy trade with Russia.
• Goldman Sachs cut India’s 2025 growth forecast to 6.5% amid tariff-related uncertainty and ICRA warns of headwinds for textiles, auto components, diamonds and electronics.
• US companies and consumers are shouldering the burden, with General Motors incurring $1.1 billion in Q2 tariff costs and the Yale Budget Lab projecting a 1.8% rise in consumer prices this year.
• Global supply chains are under strain, prompting the Federal Reserve to maintain current interest rates as trade talks remain stalled.