Uncertainty regarding tariffs from the US has created a lot of flutter across global markets, said Mayuresh Joshi, Head of Research, MarketSmith India.
US President Donald Trump in his address to Congress stated that reciprocal tariffs will be effective from April 2.
According to Joshi, there's a lot of uncertainty around how the tariffs will impact the Indian markets.
"Indian charges a sort of tariffs which is higher than 100%,"US President Donald Trump
Whether the imposition happens in the proportion the Trump administration is talking about or he's fetching everyone into the negotiating table to get a better deal for the US from the reciprocal tariffs should be watched, Joshi said.
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Trump has contradicted himself on effecting tariff rates on Canada and Mexico earlier.
Pharmaceutical and textiles segments conduct substantial exports to the US and other countries. Hence, any reciprocal tariff coming into these sectors may result in some pain in those segments of Indian stock markets, Joshi said.
"Whatever they tariff us, we'll tariff them. Whatever they tax us, we'll tax them"US President Donald Trump
Uncertainty is also pressuring the global economy. With such tariff imposition across sectors, the US consumers will get hit the hardest. Hence, it must be measured, Joshi said.
"China's average tariff on our products is twice, and South Korea's tariffs are four times higher. US helps South Korea militarily and in so many other ways to South Korea. This is happening by friend(s) and foe(s). It's not fair to the US and never was," Trump has said.
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