New Delhi: S&P Global Ratings said that if the US imposes the counter-declared retaliation on April 2, the growth rate of major Asia-Pacific economies like India, China and Japan may be affected by 0.2–0.4 percentage points in the next two years.
The rating agency said that American threats and its implementation would directly damage global trade and trust. Dependence on China for the export of the region will be particularly affected by the US and the manufacturer and small economies.
For India, S&P had estimated an increase of 6.5% and 6.8% in March for 2025 and 2026 respectively. But if the mutual tariffs declared by US President Donald Trump become effective, S&P estimates that these growth rates will fall by 6.3% and 6.5% respectively.
On April 9, Trump adjourned for three months to impose tariffs on other countries other than China. However, 10% additional fee on exports to the US, which was announced on April 2, is still effective. If the tariffs declared on April 2 are fully implemented, the growth rate of major Asia-Pacific economies like China, Japan and India will fall by 0.2–0.4 percentage points in the next two years. Vietnam, Thailand and Taiwan will have the most direct loss.
The debt situation in the Asia-Pacific region will remain negative, as the trade struggle between China and the US is affecting the development and confidence. Stopping new investment and deteriorating domestic spirit will further decline in business confidence. Additionally, there is a possibility of volatility in equity and debt markets.
If the tariffs declared on April 2, 2025 are re-enacted to other countries other than China, geopolitical and economic impacts will be serious. If China-America relations worse, it will reduce the trust and the global supply chain and business flow will be severely interrupted. These incidents can cause severe global recession.
The country’s economy will face loss in 2025, 2026 due to the post tariff First appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
