Former IMF economist Gita Gopinath says U.S. tariffs on Indian goods have hit American businesses and consumers most heavily.
In a recent post on X, the 58‑year‑old economist highlighted that although the tariffs have boosted U.S. government revenue, the money comes almost entirely from U.S. firms and consumers. The extra cost has pushed up prices for everyday items such as household appliances, furniture and coffee, adding a small but noticeable rise in inflation.
Gopinath noted that the tariffs have not yet helped the U.S. trade balance or revived the manufacturing sector—two goals that made the policy popular in the first place. “The overall score card is negative,” she said, adding that the measure has failed to deliver broader economic benefits while creating extra cost for American businesses.
Trump’s administration imposed a 25 % tariff on Indian goods in July, followed by a secondary 25 % tariff that began August 27. Trump also announced a 100 % tariff on branded and patented pharmaceutical products effective October 1, 2025, unless manufacturers build U.S. production facilities.
Meanwhile, the World Bank reports that India is still the world’s fastest‑growing major economy. Strong domestic consumption, better farm output and rising rural wages are keeping India on track for continued growth, even as U.S. trade policies change.
Source: aninews
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