- Samir Arora said India would accept a signed tariff deal at 18 percent
- More than 90 countries moved from 10 percent to 15 percent tariffs, including US allies
- Arora noted uniform 15 percent tariffs reduce competitive shifts among countries
Veteran fund manager Samir Arora on Sunday suggested that India would have been happy to have a signed deal at 18%, after US President Donald Trump increased the global tariffs from 10 percent to 15 percent following a huge setback in the Supreme Court.
Increasing global tariffs to 15%, Trump said that his decision was based on a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision by the country's top court.
In an eight-point post on X, the Helios Capital founder argued why nothing is wrong with 15% as far as India is concerned.
ALSO READ: ‘Tariff Confusion Shows The Risk': Samir Arora On Why Markets Should Not React In Real Time
He pointed out that India isn't alone in facing a 15% tariff. More than 90 countries were previously under a 10% rate and are now moving to 15%. That group includes major US trading partners like Australia, the United Kingdom, Singapore, and the United Arab Emirates.
The fund manager suggested that if most countries are clustered around the same rate — 10% or 15% — the competitive equations don't shift dramatically.
"Tariffs have power if you can pitch one country against other. If all countries have 15% (or 10%), how does it matter much- this is more of an internal tax issue for the US now."
ALSO READ: India, US To Reschedule Chief Negotiators Meet On Interim Trade Deal
Further noting that the initial 10% was anyway surprising, since the max allowed is 15%, Arora said, "Europe, Japan, South Korea are back to where they were."
"Beyond 5 months, how this will be extended is not obvious anyway and will need congressional approval. Even if finally, due to other sections, it does go back to 18% for India, it is the same as it would have been without this recent drama," Arora added.
ALSO READ: US Supreme Court Draws A Line With Trump By Curbing Tariff Powers
On Saturday, Trump warned that during the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again.
On Friday, after the court in a 6-3 vote ruled that it was unconstitutional for Trump to unilaterally set and change tariffs, the president said that he was also pursuing tariffs through other sections of federal law which require an investigation by the Commerce Department.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
