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2 hours ago
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Highlights
- Samir Arora says fifteen percent tariff is not harmful for India
- Uniform global tariff may limit competitive trade pressure
- Policy has a one hundred fifty day validity window
Fund manager Samir Arora has downplayed concerns around the proposed 15 per cent global tariff announced by US President Donald Trump, saying the move does not materially disadvantage India.
Arora, Founder and Fund Manager at Helios Capital Management Pte. Ltd., said there is “nothing wrong with 15 per cent as far as India is concerned,” placing the development in a broader global trade context rather than viewing it as India-specific pressure.
Uniform Tariffs Reduce Competitive DisadvantageAccording to Arora, over 90 countries were earlier subject to a 10 per cent tariff and are now expected to move to 15 per cent. Countries such as Australia, the United Kingdom, Singapore and the UAE were among those previously at the lower 10 per cent rate.
He argued that tariffs become powerful only when they are used to pit one country against another. If most nations are placed at the same rate — whether 10 per cent or 15 per cent, the relative competitive equation does not change significantly.
In that case, he suggested, the tariff functions more like an internal tax adjustment for the United States rather than a targeted trade weapon.
150-Day Window and Policy Uncertainty
Arora also highlighted that the revised tariff measure currently carries a 150-day validity. Any extension beyond that period would require congressional approval, adding a layer of uncertainty to its long-term continuation.
He pointed out that the initial 10 per cent tariff itself had surprised markets, given that the maximum permissible rate under the relevant framework was 15 per cent. In that context, a move to 15 per cent is not structurally dramatic, he indicated.
India’s Position
On India’s trade outlook, Arora suggested that even if tariffs were to eventually move back to 18 per cent under other provisions, the country would effectively be in the same position it might have been without the recent developments.
He also indicated that India could have been willing to sign a deal at 18 per cent, implying that a 15 per cent rate, if finalised, may not be unfavourable in comparative terms.
With global markets assessing the implications of the US tariff shift, Arora’s comments signal a view that India’s relative trade standing remains largely intact, at least in the near term, provided the rate is applied uniformly across countries.
English (US) ·