By Safe Investment August 2, 2025
The biggest impact of Trump's tariffs can be felt in America itself. This will increase inflation and the average annual expenditure of every household can increase by Rs 2.09 lakh. SBI Research Report said that low-income families can suffer a loss of about USD1300 which will be 3 times more pressure than rich families.
The 25% tariff imposed by Donald Trump on India will have the biggest impact on America. This will increase inflation and the average annual expenditure of American households may increase by USD2400 (about Rs 2.09 lakh). This shocking information has come to light in a research report of State Bank of India (SBI Research Report).
The report says that this increased burden will not fall equally on all families. Low-income American families may suffer a loss of about USD1300 (Rs 1.13 lakh), which will be three times more pressure than rich families. At the same time, rich families may also suffer a loss of up to USD5000 (Rs 4.37 lakh).
More loss to America than India
SBI also said in its report that the new trade dispute will harm America more than India. The reason for this is that America is currently facing economic challenges like weak dollar, high inflation and rising price pressure. The US economy is already struggling with slow GDP growth and rising inflation, it is now likely to suffer more from this business environment.
Prices of sectors dependent on imports will increase
The tariffs increased by Trump can increase prices especially in those sectors which are more dependent on imports. Such as electronics, automobiles and consumer durables (durable consumer goods like TV, fridge). The report also said that inflation in America is already showing signs of increasing, and the effect of these tariffs can continue till 2026. Due to this, inflation can remain above the 2% target of the US Federal Reserve.
Pressure on the whole of America, but less on India
SBI also said in its report that these tariffs will not only increase domestic spending, but it will put pressure on the entire US economy. GDP is expected to fall by 40 to 50 basis points. Because, input costs will increase and consumer demand will weaken due to inflation. On the other hand, its impact on India will be less than expected.
The US is India's largest export market, accounting for about 20% of total exports in the financial year FY25. However, India has diversified its export portfolio to a great extent. About 53% of India's total exports go to the top 10 countries, including the US. This diversity will protect India and the impact on exports will be limited.
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