US tariff shift poses modest risk to Nepal’s economy, but uncertainty grows

According to a new issue note published by South Asia Watch on Trade, Economics and Environment (SAWTEE), a 10 percent tariff hike on Nepali goods would cause only a 0.0096 percent decline in the country’s Gross Domestic Product (GDP).

The report, titled “Decoding US Reciprocal Tariffs: A Nepali Perspective,” was authored by SAWTEE’s Executive Director Paras Kharel and Senior Research Officer Kshitiz Dahal. It offers a critical analysis of how the shifting US trade policy, which increasingly leans toward reciprocity, could impact Nepal.