Trump tariffs: Prolonged 50% duty could cut India’s growth by up to 0.8%; next round of trade talks ‘important’, says Morgan Stanley

Aug 8, 2025 - 11:30
Trump tariffs: Prolonged 50% duty could cut India’s growth by up to 0.8%; next round of trade talks ‘important’, says Morgan Stanley

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Morgan Stanley warns that India's economic growth could significantly slow down if the US's 50% tariffs remain for an extended period, potentially impacting GDP by 0.4% to 0.8%. The report highlights direct and indirect effects stemming from reduced demand and disrupted supply chains. Negotiations between India and the US will be crucial to monitor.

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