US Tariffs May Hit GDP by 50 BPS, Raise Inflation: SBI

New US tariffs on Indian goods may stoke inflationary pressures significantly, but trade negotiations will restore confidence: Report

- TDG NETWORK

The recent move by the United States to impose steep tariffs on Indian goods is expected to weigh on the US economy, pushing up inflationary pressures and impacting growth, according to a report by the State Bank of India (SBI).

The report said that US GDP could be affected by 40-50 basis points due to the new tariffs, while the economy is also likely to face higher input cost inflation.

"We believe that U.S. tariffs are likely to affect U.S. GDP by 40-50 bps along with higher input cost inflation," the report noted.