Trump’s Tariffs May Hurt India By $60 Billion, Economist Warns Of Big Impact On Key Sectors

New Delhi: Former U.S. President Donald Trump has announced a 50 percent tariff on Indian goods, including a 25 percent penalty on buying oil from Russia. According to famous economist Chris Wood, this move could cause India a financial loss of around USD55 to USD60 billion.

Chris Wood is the Global Head of Equity Strategy at Jefferies. In his weekly report GREED and Fear, he said that this decision will badly affect sectors like textiles, footwear, gems, and jewelry—which provide jobs to millions of Indians.

Why Did Trump Take This Step?

Wood believes Trump acted this way because he could not play a role in solving the short India-Pakistan military conflict that happened in May. Trump might have wanted to win a Nobel Peace Prize, but India has always opposed third-party involvement in its issues with Pakistan.

These high tariffs have come at a sensitive time—just when India and the U.S. were close to finalizing a trade agreement.

No Clarity in U.S. Policy, Says Wood

Wood also said that no Indian government will open up agriculture to imports, because it would hurt the poor. Around 250 million farmers and workers in agriculture depend on it for their livelihood. This sector provides jobs to about 40 percent of India’s population.

He pointed out that Trump is ignoring India’s services sector, which earns USD150 billion per year, especially from IT services. American companies also run many Global Capability Centers (GCCs) in India, generating USD60 billion in revenue.

India May Get Closer to China

Wood warned that this tariff conflict may push India closer to China, as India needs access to cheap Chinese goods. He criticized the lack of clarity in U.S. foreign policy and said it’s not in America’s interest to lose India as a key partner.