{"id":109650,"date":"2025-08-01T07:20:09","date_gmt":"2025-08-01T07:20:09","guid":{"rendered":"https:\/\/www.europesays.com\/us\/109650\/"},"modified":"2025-08-01T07:20:09","modified_gmt":"2025-08-01T07:20:09","slug":"india-us-may-negotiate-tariff-relief-rbi-could-cut-rates-if-growth-slows-jpmorgans-aziz","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/109650\/","title":{"rendered":"India-US may negotiate tariff relief; RBI could cut rates if growth slows: JPMorgan’s Aziz"},"content":{"rendered":"

Jahangir Aziz, Head of Emerging Market Economics Research at JPMorgan believes India and the US will explore ways to lower current tariff levels.<\/p>\n

\u201c25% is pretty high,\u201d Aziz said, referring to current US tariff rates<\/a>. \u201cLet\u2019s not forget, there\u2019s a penalty on top of that.\u201d<\/p>\n

He expects India’s Reserve Bank of India (RBI) to consider rate cuts again if economic conditions soften.<\/p>\n

Also Read<\/strong> | Why India’s top fund managers aren\u2019t losing sleep over US tariffs<\/a><\/p>\n

Aziz warned that tariffs are contributing to inflation pressures in the US. Core inflation could rise to over 6% annualised by August or September. In June, goods inflation in the US excluding autos ran at an annualised pace of 6.8%.<\/p>\n

He also highlighted the growing burden of tariffs on consumers and businesses. The observed tariff rate – actual duties collected divided by total imports – reached 9.5\u201310% in June, up from 2% in December. \u201cThat has to either get absorbed in lower profit or higher prices. So there is pain already there in the system,\u201d Aziz said.<\/p>\n

Based on current monthly trends, Aziz estimated that the US could collect around $350 billion in tariffs annually, effectively acting as a consumption tax.<\/p>\n

Also Read<\/strong> | Will US tariffs hurt Tata Steel? CEO TV Narendran breaks it down<\/a><\/p>\n

On India\u2019s monetary policy, Aziz noted that while the RBI delivered a 100-basis-point rate cut last year, there is no further easing in the baseline scenario. \u201cWe don\u2019t have a rate cut anymore. We have things on hold,\u201d he said. But he added, \u201cIf growth slows, and if you don\u2019t get a spike in core inflation, the space gets opened up.\u201d<\/p>\n

Aziz believes the RBI may act in response to global cues, especially from the US Federal Reserve. \u201cIf you get a rate cut signal from the Fed… that would be a good point at which the RBI can hang its act on that,\u201d he said, suggesting a possible return to rate cuts or more liquidity support if conditions warrant it.<\/p>\n

For the full interview, watch the accompanying video<\/strong><\/p>\n

Catch all the latest updates from the stock market here<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Jahangir Aziz, Head of Emerging Market Economics Research at JPMorgan believes India and the US will explore ways…\n","protected":false},"author":3,"featured_media":109651,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,79,69841,69839,8334,31436,67,132,68,6294,69840],"class_list":{"0":"post-109650","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-india-us-tariffs","11":"tag-jahangir-aziz","12":"tag-rbi","13":"tag-reserve-bank-of-india","14":"tag-united-states","15":"tag-unitedstates","16":"tag-us","17":"tag-us-president-donald-trump","18":"tag-us-trade-tariffs"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114952301857990802","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/109650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=109650"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/109650\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/109651"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=109650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=109650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=109650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}