Trump's tariff hike could shave 0.3 pp off India's GDP: Goldman Sachs

India condemns new 25% duty on exports; total levy now at 50%; analysts expect talks before August 27 deadline

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India’s economy could take an additional 0.3 percentage point (pp) annualised hit to real gross domestic product (GDP) growth following US President Donald Trump’s decision to impose a fresh 25 per cent duty on Indian imports, Goldman Sachs said. This is over and above the 0.3 pp impact previously estimated from the April 2025 tariff round.     According to Goldman Sachs, once exclusions, such as those under Section 232 of the US Trade Expansion Act, 1962, are applied, the effective average tariff rate on Indian exports to the US will settle at around 32 per cent.    

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