What Trumponomics means for India, the world | Explained News
The radical economic outlook presented by Donald Trump includes plans to impose a 20% tariff on all imports and more than 200% duty on cars; a proposal to deport millions of irregular immigrants; and to extend tax cuts at a time when the US budget deficit is at record high. Should he walk the talk after taking charge early next year, these proposals could present some macroeconomic challenges. The coming presidency is seen as a positive for American stocks and the Dollar, even as it raises some concerns for treasuries given the risk of fiscal profligacy. Trump 2.0 could also potentially throw up challenges for India’s growth imperative amid possible disruptions in global supply chains, trade wars and tariff barriers, heightened forex volatility, and headwinds to global fund flows. A possible dilution of the Federal Reserve’s rate-cut agenda in the light of a changed macroeconomic situation in the US would also impact the trajectory of India’s monetary policy — given that the RBI may first try to resolve the uncertainties before undertaking any significant rate-cut …
