Reaction on US Tariff imposition By Utsav verma, Head of Research - Choice Institutional Equities
Below the Reaction on US Tariff imposition By Utsav verma, Head of Research - Choice Institutional Equities
In response to President Trump’s recent imposition of a 25% tariff and penalties on Indian goods, investors will reassess their strategies with a mix of caution and optimism. Sectors like textiles, pharmaceuticals, and automotive components—key Indian exports—are likely to be most impacted and may see reduced investor interest in the short term. However, recent progress in trade negotiations suggests a constructive path forward, and we believe that the trade deal will eventually follow provided both nations show the necessary political will. Many investors expect the tariff rate to eventually settle around 15%, paving the way for renewed confidence and stronger trade ties. In the short term, market will try to shed off its complacency. We do not expect huge knee-jerk reaction but a rangebound market focused on ongoing earnings.
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