50% tariffs on Indian exports to the U.S. will reduce demand 'very substantially': Moody's Analytics
The report was talking about the combined effect of the ongoing 25% tariff on Indian imports imposed by U.S. President Donald Trump, as well as the secondary tariff of 25% he imposed for India's economic dealings with Russia, which are set to come into force on August 27.
'India has experienced a sudden deterioration in its relations with the U.S. and has been threatened with 50% tariffs, a rate that will reduce demand for Indian goods very substantially,' the report said.
It added that the tariffs imposed by the U.S. have left countries across Europe and the Asia-Pacific region 'feeling bruised' since the U.S. is the largest trading partner for most of them, and a decline in sales to their largest customer 'will hurt'.
'Some firms in these countries may be willing to slash prices to maintain volumes, but this will affect firm performance through lower margins, a squeeze on wages and investment,' Moody's Analytics added.
'Given that we now expect tariffs to remain in place for the remainder of Trump's presidency, the drag on growth, particularly on investments and exports, will be notable,' it said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
19 minutes ago
- Time of India
Trump insists ‘I know what I'm doing' on Ukraine war; Zelenskyy says he can force Russia into peace
Donald Trump defended his Ukraine war approach, asserting his expertise and blaming President Biden for the conflict. He claimed he could resolve it, criticizing foreign policy experts and media. Volodymyr Zelenskyy expressed hope Trump could compel Russia towards peace, seeking reassurance of continued US support. The leaders are scheduled to meet with European counterparts to discuss the ongoing situation. Tired of too many ads? Remove Ads US President Donald Trump on Monday defended his handling of the Ukraine war in a fiery Truth Social post, declaring 'I know exactly what I'm doing' and calling his critics 'stupid people,' even as Ukrainian President Volodymyr Zelenskyy said Trump has the strength to push Russia toward before meeting Zelenskyy and European leaders, Trump claimed he had 'settled 6 wars in 6 months, one of them a possible Nuclear disaster,' and stressed that the conflict in Ukraine was 'Sleepy Joe Biden's war, not mine.' He added: 'I'm only here to stop it, not to prosecute it any further. It would have NEVER happened if I was President.'Trump accused foreign policy experts and media outlets, including the Wall Street Journal, of misleading the public. 'They are 'STUPID' people, with no common sense, intelligence, or understanding, and they only make the current R/U disaster more difficult to FIX. Despite all of my lightweight and very jealous critics, I'll get it done — I always do!!!' he for his part, struck a conciliatory note ahead of their talks, saying Trump has the 'strength to force Russia into peace.' The Ukrainian leader has repeatedly sought assurances that Washington will remain Kyiv's key ally despite Trump's calls for a negotiated end to the meeting between the two leaders, alongside European counterparts, is due to take place in a few hours.
Mint
19 minutes ago
- Mint
Indian drugmakers aim to boost exports to Mexico, South America's No. 2 pharma market
New Delhi: Indian drugmakers are in talks with Mexico for a simpler approval process as they seek to boost exports to the second-largest pharma market in South America, said two people aware of the matter. The Indian Drugs Manufacturers Association (IDMA) is intensifying its focus on Mexico, betting that the nation's complex drug approval process will be simplified, the people said on the condition of anonymity. Members of the association are in talks with officials from Mexico's ministry of economy and health regulator COFEPRIS (Federal Commission for the Protection against Sanitary Risks) to explore new rules and financial incentives, the people said. India seeks to significantly boost its medicine exports to Mexico, a market currently valued at over $20 billion and is expected to grow to $38.5 billion by 2033, according to a report by the International Market Analysis Research and Consulting Group. Domestic pharmaceuticals account for only $180 million. Indian drugmakers encounter challenges, primarily the lengthy and intricate regulatory hurdles set by COFEPRIS. India's pharmaceutical industry, the world's third largest by volume, is a global powerhouse with a diverse product base including generic drugs, vaccines, and biologics. In the fiscal year 2023-24, the market was valued at $50 billion, with exports accounting for $26.5 billion, according to the estimates provided by the Department of pharmaceuticals. Queries emailed to the Embassy of Mexico in New Delhi remained unanswered. "IDMA regularly participates in interactions with National Regulatory Agencies from various geographies," said Dr. Viranchi Shah, national spokesperson for IDMA. The talks reflect Mexico's increasing recognition of India as a reliable supplier of high-quality, affordable medicines. This push is part of a broader effort to strengthen the overall trade relationship between the two countries. While India's exports to Mexico have been growing, largely driven by the automobile and auto parts sectors, the pharmaceutical industry remains an underexplored avenue. Indian drug companies are keen to leverage Mexico's proximity to the US and its network of trade agreements to use it as a base for expanding into North and Central American markets. While a recent virtual meeting was postponed, an official familiar with the matter said IDMA is in contact with Mexican authorities to resolve the issues. This follows a similar meeting held a few months ago, indicating a consistent dialogue to streamline processes for Indian drug manufacturers. Mexico's pharmaceutical market, the second largest in Latin Americaafter Brazil and growth is fuelled by an ageing population and a rising prevalence of chronic diseases. For Indian companies, which are global leaders in generic drug production, a simplified regulatory path in Mexico could unlock a major new export corridor and diversify their international presence.
Mint
19 minutes ago
- Mint
Gold rises on softer yields, focus on Trump–Zelenskiy meeting and Jackson Hole summit
-Gold prices edged higher on Monday, buoyed by easing U.S. Treasury yields, while investors focused on U.S. President Donald Trump's meeting with Ukrainian and European leaders, and the Federal Reserve's annual symposium in Jackson Hole. Spot gold was 0.1% higher at $3,383.20 per ounce at 09:56 a.m. ET , after hitting its lowest level since August 1 earlier. U.S. gold futures for December delivery rose 0.2% to $3,388.80. Benchmark 10-year U.S. Treasury yields fell from more than two-week highs, making non-yielding gold less attractive. [US/] The key event for investors on Monday is a White House meeting between Trump and Ukrainian President Volodymyr Zelenskiy, joined by European leaders, as Washington pushes for a swift peace deal to end Europe's deadliest conflict in eight decades. This follows Trump's meeting with Russian President Vladimir Putin on Friday, where the two leaders agreed to pursue a peace deal without implementing a ceasefire. "There was not much reaction in gold to the Putin-Trump meeting. I think we'll continue in this price range. Next inflection point is the Federal Reserve," said Marex analyst Edward Meir. Minutes from the U.S. central bank's July policy meeting are due on Wednesday, ahead of the Fed's annual conference in Jackson Hole, Wyoming, scheduled for August 21–23. Fed Chair Jerome Powell is expected to speak at the event. Markets will be watching Powell's remarks on interest rates, a 25 basis point cut is already priced in, but there's an outside chance of a 50 basis point reduction, which could drive gold prices higher, Meir said. Gold tends to perform strongly in environments with low interest rates and heightened uncertainty. Elsewhere, spot silver rose 0.2% at $38.07 per ounce, while platinum fell 0.5% to $1,328.40. Spot palladium gained 0.3% to $1,115.68 after falling to its lowest level since July 10 earlier in the session. This article was generated from an automated news agency feed without modifications to text.
