Ex-IMF chief economist Gita Gopinath evaluates Trump's tariff imposition move, calls overall impact ‘negative’

In a post on X, Gopinath wrote: “It is six months since ‘Liberation Day’ tariffs. What have U.S. tariffs accomplished?”

She said the tariffs had raised substantial revenue for the government but noted that the burden was borne almost entirely by U.S. firms and partly passed on to consumers, functioning effectively as a tax on domestic businesses and households.

The tariffs also contributed to higher inflation, particularly for items such as household appliances, furniture, and coffee, she added.

However, Gopinath said there was no evidence that the measures had improved U.S. manufacturing or significantly altered the trade balance, concluding that the “overall scorecard is negative.”

Impact on India

The Trump administration, which was earlier seen as India-friendly, has imposed a 25 percent tariff on Indian exports, citing high Indian tariffs on U.S. goods and New Delhi’s continued purchases of Russian oil amid the war in Ukraine.

Since the conflict began in early 2022, India has sharply increased imports of discounted Russian crude, which now accounts for over 30 percent of its total oil imports. Indian refineries subsequently export refined petroleum products worldwide — a practice critics in Washington argue indirectly supports Russia’s war effort.

In response, the U.S. has proposed additional tariffs and trade measures aimed at discouraging India’s reliance on Russian crude.

India, for its part, has said it will take all necessary steps to protect its national interests and economic security, maintaining that its energy policy is driven by domestic needs and price stability considerations.