India-US Trade Ties: Seth Freeman Expects 'Blanket' 50% Tariff To Go Away, Cites An 'Irony'

As tensions ease between India and the United States, Glassratner - B Riley's Senior Managing Director, Seth Freeman, believes 50% blanket tariffs on India may soon be removed.

Speaking to NDTV Profit, Freeman said some of the tariffs imposed on India are not well defined. He expects more targeted tariffs going forward, while the existing blanket tariffs may cease to exist.

"There will be areas of common ground. Expect to see more targeted tariffs. I realise some tariffs are very narrowly defined. The idea of a blanket 50% tariff could go away," he said.

Freeman added that the US' tariff imposition is ironic considering the fact that India is not a 'gigantic importer'.

He added that it has more to do the geopolitical implications as well as the Ukraine factor, especially as India continues to buy arms and oil from Russia.

"The irony is that India is not a gigantic importer. The level of trade is $84-90 billion. It’s not much in the scope of things. But it’s so political, with India buying arms and oil from Russia. It’s part geopolitical, it’s partly economic and partly Ukraine," he said.

Freeman's statement comes at a time when ties between India and the US have improved, with President Donald Trump recently confirming that the US-India trade talks have continued.

Talking about the recent development between the US and India, Freeman said, "Images of India becoming closer with Russia and China may have played a huge role."

It must be noted that the US Supreme Court has decided to take up the legality of Trump's tariffs, with the first oral discussion scheduled in November.

Although tariffs may continue at some or the other, Seth Freeman believes they will be more targeted in nature.