Mark Mobius: India Can Shield Itself by Welcoming US Goods Amid Trump Tariffs
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Synopsis
Amidst the significant trade tariffs imposed by the Trump administration on various countries, Mark Mobius highlights how India could shield itself by increasing access for US goods to boost its economy.
Key Takeaways
- Trump's tariffs could affect the global economy.
- India can benefit by opening its market to US imports.
- The current Union Budget aims for self-reliance.
- Mobius advises investors to remain calm and conserve cash.
- Customs duties for certain products have been reduced.
New Delhi, Feb 3 (NationPress) With the Trump administration in the United States imposing significant trade tariffs on Canada, Mexico, and China, renowned global investor Mark Mobius remarked that these stringent actions could have lasting effects on the global economic landscape. He suggested that India can effectively protect itself by further liberalizing its market for US goods.
Trump has declared a 25 percent tariff on imports from Canada and Mexico, alongside a 10 percent tariff on Chinese goods, which will take effect starting Tuesday. He has also committed to imposing new tariffs on products from the European Union.
In a conversation with IANS, the billionaire investor, who manages the Mobius EM Opportunities Fund for emerging markets, stated that these new tariffs are poised to influence the global economic framework for years to come.
Mobius emphasized that these tariffs will have a significant impact on international markets, adding that India is well-positioned to further liberalize its market and facilitate the entry of US goods.
According to Mobius, the current global trade scenario under Trump presents a favorable opportunity for a more open world order.
The Union Budget 2025-26 has introduced measures to rationalize customs duties aimed at making the Indian economy 'aatmanirbhar' (self-reliant), as stated by Finance Minister Nirmala Sitharaman.
In an interview with NDTV post-budget, the Finance Minister noted, “We are focusing on our own economy and strengthening its foundation to transform it into a manufacturing hub.”
She further mentioned that the budget's customs duty reductions are intended to make raw materials more affordable for MSMEs, procure essential minerals, and assist Indian companies in importing materials to export high-value finished products.
Moreover, tariffs on Harley Davidson motorcycles were decreased in anticipation of Prime Minister Narendra Modi's upcoming visit to the US. For motorcycles with an engine capacity below 1600 cc, the duty on completely-built units (CBUs) has been reduced from 50 percent to 40 percent. Larger motorcycles face even steeper reductions.
Mobius remarked that while the Indian Union Budget appears promising, it may require amendments in light of evolving circumstances.
His advice for investors in the current climate is to “remain calm and conserve cash.”
