Reserve Bank of India (RBI) governor Sanjay Malhotra on Wednesday said it is not inflation but US President Donald Trump's trade tariffs which is more concerning to the central bank. During the first bi-monthly press conference of the fiscal year, the governor also mentioned that the tariff-related uncertainties are the reason the RBI has lowered India's GDP growth forecast.

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Donald Trump has been on a tariff spree; the reciprocal tariffs on India include a 26% tax on goods. Now, India is not the only country; these taxes range from 10% to 49%, the highest.

Also read: RBI cuts interest rate to 6% — lowest since 2022 — as US tariffs kick in

In his address Malhotra said, "The recent trade tariff-related measures have exacerbated uncertainties clouding the economic outlook across regions, posing new headwinds for global growth and inflation."

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"Amidst this turbulence, the US dollar has weakened appreciably; bond yields have softened significantly; equity markets are correcting; and crude oil prices have fallen to their lowest in over three years," he added.

Talking about the impact on the country, he said, "We have a comparative advantage." Indicating that this is better than that of other countries.

More on Trump tariff:

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Trump has been imposing tariffs on the left, right, and centre. This will affect goods worth millions of dollars entering the country. Will this add to the woes of Americans? So far, Trump has imposed taxes ranging from 10% to 49%; the latter is for 'worst offenders'. Canada and Mexico have currently been exempted from these scathing tariffs, though they, along with China, are already paying taxes on select products.

These tariffs have hit even on the world's remotest region – a place ruled by penguins, seals, and birds. Heard and McDonald Islands – the icy archipelago does not have a single human on the land. The last time people visited is believed to be about a decade ago.