Source link : https://news7.asia/business/u-s-tariffs-spark-asias-biggest-earnings-slump-india-takes-the-hardest-hit/
India has emerged as the hardest-hit economy in Asia following recent shifts in U.S. tariff policies, according to a new analysis highlighting significant earnings downgrades across the region. The latest data reveals that Indian companies face the steepest profit reductions among their Asian peers, underscoring the broader economic ramifications of escalating trade tensions between the world’s two largest democracies. As tariffs reshape trade dynamics, market experts warn of cascading effects on investment and growth prospects, prompting urgent calls for strategic economic adjustments in India’s corporate sector.
U.S. Tariffs Trigger Sharp Earnings Cuts Across Indian Markets
Recent adjustments in U.S. trade policy have sent shockwaves through Indian equities, leading analysts to significantly revise earnings expectations downward. Several sectors, notably export-driven industries such as textiles, auto components, and IT services, are facing margin pressures due to increased duties on goods entering the U.S. market. This shift has positioned India as the leading Asian market suffering the largest earnings cuts, reflecting broader concerns over supply chain disruptions and dampened investor sentiment.
Key affected sectors and impact overview:
- Textiles: Earnings projected to drop by up to 15% due to raised material costs and tariff-related export hurdles.
- Automotive components: Profit margins squeezed by increased raw material prices and delayed orders.
- Information…
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Author : Sophia Davis
Publish date : 2025-08-23 18:01:00
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