US President Donald Trump, in a major and controversial decision on Wednesday, announced a 25 percent tariff (import duty) on India. This tariff was scheduled to take effect on August 1st, but has now been delayed by 7 days.
US News: Is Donald Trump, who called India's economy "dead," looking at his own economy's figures? Recently, US President Donald Trump announced a 25% tariff on India, which has been postponed for 7 days. During this time, he taunted India's economy as a "Dead Economy," which is not only baseless but also inconsistent with the actual global economic situation.
On the other hand, the Indian economy continues to be among the fastest-growing global economies, while the US itself is grappling with economic challenges—such as slow job growth, rising inflation, and a decline in the growth rate.
Is India's Economy Really Dead?
The kind of rhetoric Trump used while commenting on India's economic situation can be considered merely a political statement. The reality is that India is rapidly moving towards becoming the world's third-largest economy by 2025. Agencies like the World Bank, IMF, and OECD have also described India's GDP growth as stable and b.
In the first quarter of 2024-25, India's GDP growth reached 7.8%, which is the highest figure among the world's major economies. In contrast, the US economy recorded a growth rate of only 2.1%.
Why Are Questions Being Raised About the US Economy?
Contrary to the economic promises of the Trump administration, the current US economic situation remains worrying. According to recent reports:
- More than 37,000 manufacturing sector jobs have been lost since April 2025.
- Only 73,000 jobs were added in July 2025, while an average of 168,000 jobs were being added in the same month last year.
- The inflation rate remains above 4.3%, which is affecting the purchasing power of the average consumer.
Trump's Policies Under Scrutiny
Trump imposed tariffs on various countries under the America First policy at the beginning of his tenure. He believed that this would reduce America's trade deficit, but the opposite effect was seen. According to the monthly employment report, these tariffs have had a negative impact on the US manufacturing sector.
In addition, Trump recently fired the head of the government agency that releases employment data when the report showed negative figures. Donald Trump has blamed the US Federal Reserve and its Chairman Jerome Powell for the economic situation. He has demanded that the Fed immediately cut interest rates to increase capital flow in the market. However, experts believe that cutting interest rates could further increase inflation, as the prices of goods have already increased due to tariffs.
Former US President Joe Biden had warned during his tenure that the burden of tariffs would fall on American consumers. This policy could hinder America's growth rate. Today, that warning seems to be turning into reality. The American middle class is currently troubled by inflation and the job crisis.
