New Delhi, August 2, 2025 –
In a striking analysis, the State Bank of India (SBI) has stated that former U.S. President Donald Trump’s tariff policies are causing more harm to Americans than to global economies.
While the tariffs were intended to protect U.S. industries, the SBI report highlights an unintended side effect—rising costs for American households.
American Families Facing Cost Surge
According to the report, the tariffs have led to increased inflation in the United States. As a result, the *average annual expenditure of American families has risen by nearly ₹2 lakh (approximately \$2,400). These rising costs are driven by *more expensive imports and disrupted supply chains.
This inflation is eroding the purchasing power of everyday consumers, contradicting the tariffs’ original aim of economic protection.
U.S. Economy May Suffer More Than India
The SBI study suggests that India may actually be better positioned to handle the global economic crisis triggered by protectionist policies like tariffs. The *U.S. economy, by contrast, may bear a *larger share of the damage due to its dependence on global imports and consumption-driven markets.
India’s *fiscal discipline, **diverse trade partnerships, and *resilient supply chains are seen as key strengths in this environment.
SBI’s Key Observations
- Trump-era tariffs are backfiring on domestic consumers.
- Inflation is squeezing the average American household.
- U.S. economic strain could surpass that of emerging markets like India.
- India is better prepared to face the global economic uncertainties ahead.
What This Means for India
While protectionist measures are reshaping global trade, India appears to be on relatively *strong footing, with *policy stability and growing self-reliance in key sectors. SBI’s assessment may strengthen investor confidence in India’s long-term growth potential amid global volatility.