As US President Donald Trump's sweeping tariffs on goods from Mexico, Canada, and China trigger fresh global trade tensions, Zerodha founder and CEO Nithin Kamath on Monday criticised America's aggressive stance. Kamath suggested that “America First” policies could disrupt global markets and destabilise international relations.
“The way Donald Trump has gone about imposing tariffs and making statements about other countries makes it feel like we are all subjects of the ‘US empire,’ if it wasn’t evident till now,” Kamath remarked, pointing to the disproportionate influence the US holds over global economic affairs.
Trump’s new tariffs, announced through three executive orders, impose a 25% duty on Mexican and most Canadian imports and 10% on goods from China, citing reasons ranging from combating the fentanyl crisis to addressing illegal immigration. These measures have already drawn sharp responses from affected countries. Canada plans retaliatory tariffs worth $155 billion, while China has vowed to challenge the move at the World Trade Organization (WTO).
Kamath questioned the long-term sustainability of such unilateral moves. “In terms of trade, China today is the largest trading partner for over 120 countries. In terms of financial and military dominance, the US remains the most powerful nation—for now,” he noted, hinting at the fragile balance of global power dynamics.
The central question, according to Kamath, is whether the “America First” approach will ultimately backfire. “In such a globalized and interconnected world, how can you increase tariffs, which will inflict collateral damage, and still hold on to power?” he asked, underlining the risks of economic nationalism in an era where supply chains and financial systems are deeply intertwined.
The economic repercussions are already being felt. Canadian Prime Minister Justin Trudeau warned that Trump’s tariffs would raise grocery and fuel costs for American consumers, potentially disrupting auto assembly plants and cutting off essential supplies like steel, aluminum, and uranium. Trudeau has even urged Canadians to boycott US products and reconsider travel to the US in response.
On Sunday, Kotak Mahindra Bank founder Uday Kotak highlighted the broader implications for emerging markets like India. “It will have a major impact on global supply chains and markets. Time for emerging markets, including India, to prepare for and be resilient to outflow shocks from global investors,” Kotak said.
While Trump’s tariffs aim to protect American interests, critics argue that they risk alienating allies, triggering trade wars, and slowing global economic growth.