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US-China Trade War: There is a stir in the whole world once again with the new trade policy of America. The latest tariff decisions of Trump administration have raised concern for Asian countries as well as India. Moody’s Rating says that if it continues like this, then Asia’s economy can have a serious impact. Even India will not be completely untouched by this.
Direct attack on China
US President Donald Trump has currently given 90 days of tariffs on some countries, but a huge tariff of 125 percent on China has already been implemented. Apart from this, an additional fee of 10 percent will also continue. Nikki Dang, Senior Vice President of Moody’s, told PTI, “If the tension between the US and China increased further, it will affect the growth rate of the entire Asian region.”
India is not completely safe
Large domestic consumption economies like India are in some relief, because foreign companies can now turn to invest in local markets. But Moody’s believes that it may take many years to see a big change in such investments. Moody’s Analytics gave India’s GDP growth rate of 2025 6.4. Reduced from 6.1. Is done. The reason behind this is being given, it is the instability in global trade and the effects of America’s tariff.
America-China conflict
The heavy duty on China will increase the pressure on the economy there. India and the rest of the Asian countries can turn this opportunity into an opportunity for themselves. But Moody’s clearly says that the growing steps towards the growing uncertainty in America’s trade policy and ‘De-Globalization’ will not give global trade as the stability as before.
The world growing towards de-globalization?
Moody’s report says that even though the tariff is currently banned, America’s stance is towards ‘Rashoring’ (ie bring manufacturing to the country). Due to this, the traditional structure of global trade, which was still on trust and rules, seems to be breaking slowly.
Indo-American Trade Agreement
Meanwhile, trade experts in India believe that this 90 -day deferment is a “Golden Window”, where the bilateral trade agreement (BTA) between India and the US can be carried forward. Currently, the trade between India and America is worth $ 191 billion. Both countries have targeted to take it up to $ 500 billion by 2030. It is expected that the first phase of BTA can be completed by September-October this year.
