India expects consumption tax cuts announced by Prime Minister Narendra Modi will give a boost to the economy without hurting the government’s fiscal deficit, helping to offset the fallout from higher US tariffs.

China — often characterized by White House officials as the arch-rival of the U.S. in trade — has been among the countries most negatively affected by Trump’s mercurial barrage of tariffs. India is currently suffering severe penalties imposed by the Trump administration due to its continued purchasing of oil from Russia.

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