The Influence of Trump’s Tariff Policy on India’s Monetary Policy Adaptation to Global Trade Disruptions in the Digital Age

DOI

10.2991/978-2-38476-559-1_45How to use a DOI?

Keywords

Trump Tariff Policy; India’s Monetary Policy; Cash Reserve Ratio (CRR); Global Trade Disruptions; Digital Trade Era

Abstract

Purpose – This paper examines the impact of the Trump administration’s tariff policy on India’s monetary policy adaptation in response to global trade disruptions, with a particular emphasis on the digital trade era. It attempts to comprehend the manner in which the United States’ implementation of protectionist measures led to monetary policy adjustments in India, such as decreases in the Cash Reserve Ratio (CRR) and rate cuts.

Methodology – This study employs a qualitative secondary research methodology to synthesize findings from peer-reviewed publications, policy reports, and prominent financial newspapers. A thematic content analysis has been employed to identify the primary mechanisms through which US tariffs influenced India’s monetary policy responses.

Results – The study indicates that Trump’s tariff approach caused increased uncertainty in global trade, leading to devaluation pressures on the Indian Rupee and risks of imported inflation. In response, the Reserve Bank of India (RBI) enacted expansionary policies, such as interest rate reductions and CRR decreases, to strengthen the domestic economy and liquidity while alleviating foreign shocks.

Conclusions – This research enhances the comprehension of the influence of foreign trade protectionism on domestic monetary policy in developing economies. It underscores the difficulties encountered by policymakers in reconciling growth, inflation, and exchange rate stability within a digitally interconnected global economy.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Subhash Yadav
AU  - Suresh S. Kawitkar
PY  - 2026
DA  - 2026/04/19
TI  - The Influence of Trump’s Tariff Policy on India’s Monetary Policy Adaptation to Global Trade Disruptions in the Digital Age
BT  - Proceedings of the Global Innovation and Technology Summit “AAROHAN 3.0”_HSS track (GITS-HSS 2025)
PB  - Atlantis Press
SP  - 702
EP  - 707
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-559-1_45
DO  - 10.2991/978-2-38476-559-1_45
ID  - Yadav2026
ER  -