50 percent tariff imposed by the US has broken the Indian rupee back. The result is that the rupee has gone to the lowest level till date. America’s tariff has come into effect from 27 August. On Friday, there is a fall of more than 70 paise in the rupee. The rupee record has come at 88.30 against the dollar. This decline shows that investors are worried about what will be the impact of America’s heavy tariff on India’s trade and development. The rupee fell by 88.30 against the US dollar, while its lowest level was 87.95.
According to brokerage firm Jefferies, this huge tariff of America can cause a loss of up to Rs 52 lakh crore to the Indian economy. Due to this tariff, there is a danger of jobs in small and medium industries, which depend on American imports. Because by increasing the tariff, Indian goods exported to America can be expensive, which will reduce the demand. Its direct impact will be on Indian exports. Vice President and Senior Portfolio Manager (Emerging Markets Equity – India) Hari Shyamsunder said that tariffs will affect exports and it can put additional pressure on India’s trade balance.
Pressure can be seen on GDP data
On August 29, data up to the first quarter of the current financial year i.e. April-June will be released in India. There is a possibility that the pressure of tariff may also be seen on these figures. The growth speed of Indian GDP may be slightly soft. Apart from this, the effect of lethargy and weak urban demand in private investment can also show. However, the expert believes that the effect of tariff will be more on the results of the second quarter, as the export data can be assessed in it.
Attack on India again over Russian oil
Peter Navarro, the business advisor of US President Donald Trump, attacked India again on Friday. He alleged that India is using the dollar earned from American trade to fund Russia’s Ukraine War. Navaro justified 50% import duty imposed by the US on goods coming from India. He said that Indian refiners are refining Russian oil in association with Russian partners and are making huge profits by selling it in the international market, while Russia is using this money to run Ukraine war.