USA vs India: Tariff Dispute Sparks Tension in Bilateral Relations, Economists Weigh In

After former US President Donald Trump announced the imposition of up to 50% tariffs on certain imported goods from India, trade relations between the two countries have become strained. Experts have warned that this decision could have a significant economic impact on India. Meanwhile, India has indicated that it will not bow under any pressure.

There is a wave of opposition in America against Trump's policy. A group of American leaders is advising Prime Minister Narendra Modi to reject these conditions. According to experts, the impact of this decision may not only affect India but also the American economy.

According to Moody's report, issues like inflation, rising rents, and uncertainty in the employment sector have already become serious in America. More than 90 percent of American citizens are worried about rising food prices. If tariffs increase, the prices of goods are likely to rise further. This could particularly have a significant impact on the car industry.

Many vehicle manufacturers have expressed concerns about rising production costs, indicating a risk of reduced profits. Trump had promised to keep inflation under control before the election, but figures show that the trend of price increases remains. Economic analysts believe that the tariff policy could have the opposite effect, increasing pressure on American citizens' purchasing power and making the risk of recession more severe. Trump's warning to suspend dialogue with India could further escalate this dispute.