The Indian markets don’t need to worry much about US President Donald Trump hiking trade tariffs to 50% from the already announced 25% on Aug. 1, according to market veteran Manish Sonthalia.
Sonthalia, director and chief investment officer at Emkay Investment Managers points out that in the long term, the tariffs are expected to go down and have a diminished impact on the India story.
A quick recap? Trump stacked an additional 25% tariffs on India for the purchase of Russian crude oil on Wednesday. The US President signed an executive order mandating the imposition of additional import levies.
“I find that the Government of India is currently directly or indirectly importing Russian Federation oil,” he stated in the order from the White House website. This additional 25% tariff will come into effect from Aug. 27, bringing the rates up to 50.
