In the wake of the increased US tariffs on exports, the Asian Development Bank (ADB) has slashed its projected growth rate from 6.7 per cent to 6.5 per cent. Releasing the Asian Development Outlook, the ADB said, "India faces the steepest tariff hikes among developing Asian economies, prompting a downgrade in its growth outlook. The sharp escalation in tariffs is expected to weigh heavily on key export sectors such as textiles, garments, jewellery, shrimp and chemicals."

US President Donald Trump imposed a punitive 25 per cent tariff on India for buying Russian oil over and above the base tariffs of 25 per cent, taking the cumulative tariffs to 50 per cent. In most of cases, the effective tariffs are above this level, making it extremely difficult for India to export goods to the US.

ADB

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