The US decision to cut tariffs from 25 per cent to 10 per cent for 150 days is seen as a major relief for India and emerging markets. |
New Delhi: The United States’ decision to reduce tariffs from 25 per cent to 10 per cent for 150 days has brought relief to India and other emerging economies.
Vishal Kampani, Senior Vice President of All India Management Association (AIMA) and Vice Chairman & Managing Director of JM Financial Limited, called the move a “very positive development” for emerging markets.
Speaking on the sidelines of an AIMA event in New Delhi, he said the tariff reset will help normalise global trade and bring clarity for businesses and investors.
Better Than Expected Outcome
Kampani said markets were expecting tariffs to settle around 18 per cent. However, the final decision to bring them down to 10 per cent is better than anticipated.
He explained that earlier, different countries faced different tariff rates, creating confusion and uncertainty in global trade. Setting a uniform 10 per cent rate across countries, including India, brings more stability.
“It just resets it back to where we were,” he said, adding that this step reduces pressure on developing economies that were struggling with higher trade barriers.
Caution Still Needed
While welcoming the decision, Kampani also advised caution. He pointed out that the US government has many policy tools and can change rules again if needed.
“There are internal conflicts within the US that could influence future policy decisions,” he noted. Because of this, investors and businesses should stay alert and watch future developments carefully.
Relief for Emerging Economies
Market experts believe the lower tariff will improve trade flows and increase investor confidence in countries like India. Lower trade barriers can help exporters, reduce uncertainty and support economic growth in emerging markets.
The decision is being seen as an important step toward stabilising global trade at a time when businesses are looking for predictability and clear policy direction.
