US President Donald Trump’s ‘Liberation Day’ tariffs have brought limited tariffs for the United States even after six months of introduction, former IMF deputy managing director Gita Gopinath said.
In a post on X, the she explained that while the tariffs have significantly boosted government revenue, the gains have come largely at the expense of domestic firms and households hitting American businesses and consumers.
“Raise revenue for the government? Yes. Quite substantially. Borne almost entirely by US firms and passed on some to US consumers,” she noted.
Gopinath also warned that the tariffs have contributed to higher prices, burdening households, pointing out that costs have risen in several everyday consumer items.
“Raise inflation? Yes, by small amounts overall. More substantially for household appliances, furniture, coffee,” she said.
She further added that there are still no signs of improvement in the US trade balance or manufacturing sector, two areas the tariffs were intended to support. Summing up, Gopinath called the overall “score card…negative,” indicating that the policy has failed to meet its broader economic goals while adding inflationary pressures.
Donald Trump had imposed massive tariffs on many countries citing trade imbalance and announcing them as a part of efforts to boost American manufacturing and support US workers.
The US imposed an additional tariff of 25% on Indian imports to the country on top of an already existing 25% tariff, taking the total amount to 50%.
On 26 September, he further announced plans to impose a 100 per cent tariff on branded and patented pharmaceutical products from October 1, 2025, unless the manufacturers set up production facilities in the US, according to ANI
Meanwhile, a World Bank report predicts that India will continue to be the world’s fastest-growing major economy. The growth expected to be supported by strong domestic consumption, improved agricultural output and rising rural wages, according to the World Bank’s latest South Asia Development Update.
In a post on X, the she explained that while the tariffs have significantly boosted government revenue, the gains have come largely at the expense of domestic firms and households hitting American businesses and consumers.
“Raise revenue for the government? Yes. Quite substantially. Borne almost entirely by US firms and passed on some to US consumers,” she noted.
Gopinath also warned that the tariffs have contributed to higher prices, burdening households, pointing out that costs have risen in several everyday consumer items.
“Raise inflation? Yes, by small amounts overall. More substantially for household appliances, furniture, coffee,” she said.
She further added that there are still no signs of improvement in the US trade balance or manufacturing sector, two areas the tariffs were intended to support. Summing up, Gopinath called the overall “score card…negative,” indicating that the policy has failed to meet its broader economic goals while adding inflationary pressures.
Donald Trump had imposed massive tariffs on many countries citing trade imbalance and announcing them as a part of efforts to boost American manufacturing and support US workers.
The US imposed an additional tariff of 25% on Indian imports to the country on top of an already existing 25% tariff, taking the total amount to 50%.
On 26 September, he further announced plans to impose a 100 per cent tariff on branded and patented pharmaceutical products from October 1, 2025, unless the manufacturers set up production facilities in the US, according to ANI
Meanwhile, a World Bank report predicts that India will continue to be the world’s fastest-growing major economy. The growth expected to be supported by strong domestic consumption, improved agricultural output and rising rural wages, according to the World Bank’s latest South Asia Development Update.
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