Trump's tariff tantrum may affect US GDP by 40-50 bps, stoke inflation, warns SBI

The US move to impose 50% tariffs on Indian goods could backfire on its own economy, according to SBI. The bank estimates US GDP may fall 40-50 bps, with inflation staying above 2% till 2026 as higher input costs hit sectors like autos, electronics and consumer durables. Duties target $45 bn of Indian exports, pressuring textiles and gems, though pharma and steel remain insulated. SBI warned Indias trade surplus could flip to deficit if all exports face the duty but expects talks to restore confidence.