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Will US Tariff Uncertainty Boost or Bruise India's Growth Story?

Outlook Money

|

June 2025

Discover how shifting US trade policies and dollar volatility may reshape India's economic opportunities ahead.

- SREEJITH BALASUBRAMANIAN

Will US Tariff Uncertainty Boost or Bruise India's Growth Story?

The US announced reciprocal tariffs on April 2, dubbed Liberation Day, only to pause them for 90 days and provide exemptions. Trade tensions with China escalated but has eased of late. Policy-induced uncertainty caused US long-term treasury yields to rise and the USD to weaken, unusual in a typical risk-off scenario. This was likely due to several factors:

  • A shift in global asset allocation as US policy credibility was reassessed and diversification pursued.

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