US plans tariffs on India as trade tensions rise, Morgan Stanley warns of business impact

The U.S. plans to impose reciprocal tariffs on India, responding to India's higher tariffs on U.S. goods. This move could create uncertainty that may affect business confidence, according to Morgan Stanley. India's average tariff on U.S. imports is 8.5%, while the U.S. charges 3% on Indian products. The U.S. is a key trading partner for India, with significant exports in services and goods. Morgan Stanley suggests that if trade tensions worsen, the Reserve Bank of India may deepen monetary policy easing, potentially cutting interest rates more than previously expected.