Expert Says US Tariff Cut To 10% Brings Relief For India And Emerging Markets

The United States’ decision to lower tariffs to 10 per cent from the earlier 25 per cent has been described as a significant and positive development for emerging markets, including India.

Speaking to IANS on the sidelines of an event organised by the All India Management Association (AIMA), Vishal Kampani, Senior Vice President of AIMA and Vice Chairman and Managing Director of JM Financial Limited, said the move would remain in effect for the next 150 days and offers much-needed clarity to global businesses and investors.

Kampani noted that market expectations had been that tariffs would settle around 18 per cent, but the reduction to 10 per cent exceeded those projections.

According to Kampani, the revised tariff structure helps bring greater uniformity to global trade. Earlier, different countries faced varying tariff rates, but the reset to 10 per cent across nations, including India, contributes to normalising the system and restoring predictability.

He suggested that the move effectively returns trade conditions closer to earlier levels, offering relief to economies that had been grappling with elevated trade barriers.

Caution Amid Policy Uncertainty

While welcoming the decision, Kampani urged caution, pointing out that the US retains several policy tools that could alter the current framework. He observed that internal dynamics within the US may influence future policy changes, and stakeholders should remain watchful of potential shifts.

Referring to the AIMA event, Kampani expressed satisfaction at being part of the leadership team as the institution marks its 70th year. He described the gathering as engaging, with discussions spanning politics, economics and finance.

The US move to lower tariffs is widely viewed by market participants as a step that could improve trade flows and strengthen investor sentiment in developing economies