New Delhi: Calling the US decision to reduce tariffs to 10 per cent a ‘very positive development’ for emerging markets, an expert on Saturday said the move helps normalise global trade and brings much-needed clarity to businesses and investors.
Speaking to IANS on the sidelines of an event organised by All India Management Association (AIMA) here, Vishal Kampani, Senior Vice President of AIMA and Vice Chairman & Managing Director of JM Financial Limited, said the US move to reset tariffs to 10 per cent from the earlier 25 per cent is a welcome step. The revised rate will remain in place for the next 150 days.
“I think this is a very positive development for emerging markets. Tariffs have been reset to 10 per cent from the earlier 25 per cent,” he mentioned.
“We were expecting them to settle around 18 per cent, but they have now been reduced to 10 per cent for the next 150 days,” Kampani told IANS.
He explained that the move helps bring uniformity to global trade. According to him, many countries earlier had different tariff rates, but setting a 10 per cent rate across countries, including India, helps normalise the system. “It just resets it back to where we were,” he said.
However, Kampani also urged caution, noting that the US has several policy tools at its disposal.
“Let’s just wait and see what tools they come up with to change some of these rules again,” he told IANS, pointing out that there are internal conflicts within the US that could influence future policy decisions.
Speaking about the AIMA event, Kampani said he was delighted to be part of the leadership team in its 70th year.
He described the gathering as exciting, with discussions covering politics, economics, finance and several other key topics.
The US decision to lower tariffs to 10 per cent across countries, including India, is being seen as a major relief for emerging markets that were dealing with higher trade barriers.
Market participants believe the move could help improve trade flows and boost investor confidence in developing economies.
(IANS)
