US Trade Policies Under Fire

Investment expert Chris Wood has labeled US President Donald Trump's 50% tariff on India and Brazil as "xenophobic autarky", suggesting a departure from international trade norms.

Wood argues that the US has abandoned the principles of the international trading system, advocating for a collective response from affected countries rather than individual negotiations.

Impact of Tariffs on India

The new tariffs, including a 25% increase on India for purchasing Russian oil, raise the total duty to 50%, significantly impacting sectors like textiles, chemicals, and fisheries. Only pharmaceuticals and electronics remain unaffected.

Goldman Sachs estimates a potential 0.3 percentage point reduction in GDP growth from these tariffs, with risks to growth forecasts for the coming years.

Call for Collective Action

Wood emphasizes the need for a unified approach to challenge these policies, warning of the broader implications for global trade and prosperity.