Why will the impact of US tariffs on india be less? 
india and japan are the least affected economies due to the strength of domestic demand regarding US trade tariffs. This is stated in a Morgan Stanley report released on Friday. The ratio of goods exports to GDP is the most important metric; it determines the extent of economies' trade. This helps global research firms assess which economy will face more negative pressure on growth.
25 percent tariff also imposed
The US has also imposed a 25 percent tariff on auto imports. The report said that japan and Korea will be most affected by the imposition of 25 percent tariff on autos and auto parts, as both countries' auto exports to the US account for 7 percent of their total exports. The US administration may propose a plan for reciprocity in trade relations on april 2. The US administration is also indicating that it will impose sectoral tariffs on energy, pharmaceuticals, semiconductors, agriculture, copper and wood.
What is in Morgan Stanley's report?
Morgan Stanley's report said that "Reciprocal tariffs would impact nearly all economies in Asia either directly or through economy-specific duties or sectoral tariffs. But our main concern is that high levels of policy uncertainty weigh on 'capital expenditure' and 'trade', thereby hurting the business cycle. The US runs a reasonably large combined deficit in passenger vehicles, vehicles for goods transport and auto parts (including EV batteries) at US$245 billion.
For China, the bulk of the deficit comes from EV batteries
Of this deficit, Asia's share is US$115 billion, or 47 per cent. Within Asia, three economies, japan, Korea and China, make up the bulk of this deficit. The three economies rank second, third and fourth among the top 10 economies with which the US runs the largest auto deficit. The report said, "For japan and Korea, the bulk of the deficit is linked to vehicles and non-battery auto parts. For China, the bulk of the deficit comes from EV batteries.
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