New Delhi, April 3 -- The tariffs announced by United States President Donald Trump on April 2, 2025, on 60 countries excluding Canada and Mexico will shrink the country's economy in both the short- and long-terms, according to an analysis by Yale University.

US real Gross Domestic Product (GDP) growth is -0.5pp lower in calendar year 2025 and -0.1pp lower in calendar year 2026, as per the analysis by The Budget Lab at Yale. It is a non-partisan policy research centre that provides in-depth analysis of federal policy proposals for the American economy.

After 2026, says the analysis, the level of GDP begins to recover modestly as production and supply chains reoptimise.

"But in the long-run, US output is still -0.4% lower from the April...