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Tariff boomerang: U.S. move against India may cost Americans more
SBI warns U.S. tariffs on India could backfire, raising inflation by 2.4 percent and crippling access to affordable healthcare and goods.
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R Suryamurthy - Fri, 01, Aug 2025
- 13:27 EDT
- 32
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A 3D-printed miniature model of U.S. President Donald Trump, the Indian flag and the word / REUTERS/Dado Ruvic/Illustration
The United States’ imposition of a sweeping 25 percent tariff on Indian imports may end up inflicting more pain on American households than on Indian exporters, according to a stark assessment by the State Bank of India’s research wing. The move, intended as economic pressure for India’s continued ties with Russia, could fuel inflation, dent U.S. household incomes, and raise costs across multiple sectors, the report said.
“The 25 percent tariff is a bad business decision,” said the SBI Research report, calling it a short-sighted trade action that could “boomerang” on the American economy. “In the absence of supply chain re-optimization or domestic substitution, the tariffs could push U.S. inflation up by 2.4 percent.”
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