India reacts to Trump's 25% tariff on the country
Trump's decision dashes hopes of a limited trade agreement between the two countries, which had been under negotiation for several months.
Here are some reactions:
Madhavi Arora, economist, emkay global
'While the negotiations seem to have broken down, we don't think the trade-deal haggling between the two nations is over yet. We see it more from the lens of geopolitics than purely economics and see both sides striving to get the deal done, even as the power equations may change a bit in U.S. favour.'
R. Anen Banerjee, partner of economic advisory, PWC India
'Higher tariffs for India compared to countries it competes with, for exports to the U.S., are going to be challenging.
However, the expectation is that the trade deal is likely to be finalised shortly and hence the period of applicability of these higher tariffs could be short.'
Trump says US to impose 25% tariff on India from Aug 1
Nilesh Shah, MD Kotak Mahindra AMC
'Despite the unpredictable policy making of the U.S., the market was expecting a tariff deal to work out as longer-term U.S.-India strategic interests are aligned.
Markets will hope for a 'TACO' trade if better senses prevail.
China is defying U.S./UN sanction on Iran oil, Myanmar and Russia trade and North Korea support. Size and the competitiveness of the economy has its advantages.
I hope and pray that this unilateral imposition should accelerate Indian policy making to be growth supportive. Our biggest deterrence continues to remain GDP size and competitiveness.'
Agneshwar Sen, trade policy leader, EY India
'The decision to raise the U.S. tariff to 25% on Indian exports is an unfortunate development, particularly given the strong strategic partnership that has been steadily built between India and the USA in recent years.
However, it's important to note that both countries remain positively engaged in active negotiations with the U.S. team expected in India later in August to finalize a comprehensive trade agreement.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
18 minutes ago
- Business Recorder
South Korean shares slide 3% on tariff and tax woes
SEOUL: Round-up of South Korean financial markets: South Korean shares dropped 3% on Friday and were on track for their biggest fall in nearly four months, as the United States announced new tariffs on dozens of trading partners and domestic tax code revisions reduced hopes for market reforms. The benchmark KOSPI was down 99.78 points, or 3.07%, at 3,145.66, as of 0129 GMT, set to post its biggest daily percentage fall since April 7. U.S. President Donald Trump signed an executive order on Thursday imposing reciprocal tariffs on U.S. imports from dozens of countries, including a 15% tariff on South Korea, lower than a threatened 25% but higher than the current 10%. South Korea's government put forward plans on Thursday to roll back recently imposed tax cuts, such as those on corporate income and stock investments. 'It could have a critical impact on the sincerity of the administration's policy to revitalise the stock market and resolve the Korea Discount,' said Han Ji-young, an analyst at Kiwoom Securities. Meanwhile, South Korea's exports rose for the second straight month in July on strong chip demand and shipments being moved forward ahead of higher U.S. tariffs. Among index heavyweights, chipmaker Samsung Electronics fell 1.40%, while peer SK Hynix lost 5.12%. Battery maker LG Energy Solution slid 1.05%. Hyundai Motor and sister automaker Kia Corp were little changed, while Steelmaker POSCO Holdings shed 4.38%. Securities firms plunged 5.08%, while financial groups fell 3.86%. Of the total 932 traded issues, only 36 shares advanced, while 880 declined. Foreigners were net sellers of shares worth 317.8 billion won ($227.06 million). The won was quoted at 1,397.5 per dollar on the onshore settlement platform, 0.39% lower than its previous close at 1,392.0.
Business Recorder
an hour ago
- Business Recorder
Japan's Nikkei slips on tech investment concern; Tokyo Electron plunges
TOKYO: Japan's Nikkei share average slid on Friday, dragged lower by chip-related stocks on rekindled concerns about technology investment. Tech heavyweight Tokyo Electron plunged 17%, the most in almost a year, after the chip equipment maker slashed its profit forecast, citing changes in spending plans by semiconductor companies. Chip-testing equipment maker Advantest dropped 2.2%. The Nikkei 225 Index slid 0.4%, set for a 1.3% decline this week. The broader Topix edged up 0.4%, largely on the back of gains in utilities. U.S. shares slid overnight, with artificial intelligence-related companies such as Nvidia weighing on the PHLX semiconductor index. And shortly before Asian markets opened, U.S. President Donald Trump slapped dozens of trading partners with steep tariffs, further damping demand for risk assets. 'Semiconductor-related stocks with high price-to-book ratios started with a selling bias,' said Maki Sawada, an equities strategist at Nomura Securities. 'Factors including the drop in the SOX index and the sharp decline in Tokyo Electron appear to be spreading to other semiconductor-related stocks and weighing on the overall market.' After market hours on Thursday, Tokyo Electron cut its operating profit forecast by more than 20%. Capital investment in mature generation equipment in China fell during the June quarter, the company said. There were 176 advancers on the Nikkei against 47 decliners. The largest percentage gainer on the index was Fuji Electric with a 14% jump after the company lifted its full-year profit guidance. Japan Tobacco surged 5.8% after saying it expected operating profit to more than double in the year ending in December. The largest loser by percentage on the index was Tokyo Electron, headed for the biggest slide since August 2024. It was followed by Socionext, down 12%, and Hitachi, which lost 8.5%.
Business Recorder
an hour ago
- Business Recorder
Sri Lanka to continue discussions with US on trade tariff
COLOMBO: Sri Lanka will continue trade discussions with US officials, the South Asian nation's treasury secretary said on Friday after President Donald Trump announced a reciprocal tariff of 20% on imports from the country. The island nation 'remains positive' that Sri Lanka and the US can reach a mutually beneficial situation on tariffs, the official told reporters.
