New Delhi, Aug 27
As Indian exporters brace for the impact after additional 25 per cent US tariffs on key goods came into effect on Wednesday, reports said that Trump tariffs are likely to affect the US GDP by 40-50 bps by by triggering inflationary pressures.
The US inflation is expected to stay above the 2 per cent target through 2026, driven by supply-side effects of tariffs and exchange rate movement, according to a report by SBI Research.
"The US is beginning to show signs of renewed inflationary pressure, driven by the pass-through effects of recent tariffs and a weaker dollar - particularly in import-sensitive sectors such as electronics, autos, and consumer durables," the report mentioned.
The US decision to impose steep tariffs on Indian goods is set to weigh on the American economy by stoking inflationary pressures and slowing growth, the SBI said in its report.
"We believe that US tariffs is likely to affect US GDP by 40-50 bps and higher input cost inflation," it added.