look news india
New Delhi: US President Donald Trump on Wednesday announced a mutual tariff on 60 countries around the world, including 27 percent of concessional tariffs on India. However, one of the top economists, Raghuram Rajan said that Trump’s move would cause damage to the US economy rather than advantage and it would not have much impact on India. American economist David Rosenberg said that Trump’s tariffs could push the US economy towards recession and it will affect the whole world.
US President Donald Trump has announced a fee of 10% to 50% on imports from all his business partners as per additional price. In this context, former RBI governor Raghuram Rajan said that Trump’s tariff will have the most adverse effect on the US economy in the short term. In the language of football, it is a ‘self-Gol’.
Talking about the direct impact of Trump’s tariff on India’s exports, prices will increase for American consumers. This will reduce demand and affect India’s economic growth. However, in reality, the US has also imposed tariffs on other countries, and India competes with the products of those countries, so its impact on India will be less, as American consumer will not be able to move to non-tariff producers as an alternative.
Rajan said that Trump’s long -term goal is to increase production in the US, but if it is possible, it will take a long time. Interpersonal tariffs are unlikely to increase inflation in India, as India exports less. There is a large part of domestic demand in the Indian economy. Other countries like China will also prefer to export India instead of America. David Rosenberg, the founder and chief economist of Rosenberg Research in the US, believes that by the end of 2025, the US may be hit by recession. Rosenberg is known for its analysis and opinion on the global economy and financial markets. He has also been the main economist of Meril Lynch.
According to experts, the US economy was already facing low growth rate. A month ago, Rosenberg predicted that the US GDP growth in 2025 could be less than 1 percent.
Now this danger has increased further with the announcement of strict mutual charges levied by Trump. If the gross domestic product growth rate of a country decreases to two quarters continuously, then that economy is considered in recession.
After Trump imposes tariffs, now other countries can also impose tariffs in retaliation against the US, which will cause a serious shock to global trade. America’s business partners China, Europe and other countries can also take retaliation by imposing new tariffs and trade ban.