Calling the US decision to lower tariffs to 10% a positive move for emerging markets, Vishal Kampani, Senior Vice President of AIMA and Vice Chairman & Managing Director of JM Financial Limited, expressed approval. The reduction from 25% to 10% is seen as a step towards normalizing global trade, providing clarity for businesses and investors. Kampani highlighted that this adjustment will be effective for the next 150 days.
He emphasized the significance of this change, stating that it brings consistency to international trade practices. By setting a uniform 10% tariff rate across countries, including India, the system is being standardized. Kampani noted that this adjustment aligns various countries that previously had different tariff rates, ultimately restoring the trade environment to a familiar state.
While acknowledging the positive impact of the tariff reduction, Kampani also advised caution. He pointed out that the US possesses various policy tools that could potentially alter these regulations in the future. Kampani suggested observing how the US may utilize these tools to modify trade rules, considering internal conflicts within the country that could influence policy decisions.
Discussing the AIMA event, Kampani expressed his pleasure in participating in the organization’s 70th year celebrations. He described the event as engaging, covering a wide range of topics such as politics, economics, and finance. The decision by the US to decrease tariffs to 10% for all countries, including India, is viewed as a significant relief for emerging markets facing trade barriers. This move is expected to enhance trade flows and bolster investor confidence in developing economies.
