As the world braces for the fallout from US President Donald Trump’s latest tariff measures, Uday Kotak, founder and director of Kotak Mahindra Bank, has issued a warning about the potential ripple effects on global markets. “Trump, tariffs, turbulence. US imposes fresh import duties on Canada, Mexico, and China. It will have a major impact on global supply chains and markets,” Kotak wrote, highlighting the urgency for emerging economies like India to prepare for possible shocks. “Time for emerging markets, including India, to prepare for and be resilient to outflow shocks from global investors,” he added.
Kotak’s comments come in the wake of Trump’s sweeping executive orders imposing 25% tariffs on most imports from Mexico and Canada, and 10% duties on goods from China, effective from Tuesday. The move, framed as part of Trump’s strategy to address what he calls a “national emergency” over issues like illegal immigration and the fentanyl crisis, has triggered immediate backlash from affected countries.
Mexico and Canada, America’s top trading partners, quickly announced retaliatory tariffs. Canadian Prime Minister Justin Trudeau declared 25% tariffs on $155 billion worth of US goods, warning American consumers of rising grocery and gasoline costs, potential auto plant shutdowns, and restricted supplies of critical commodities like nickel, uranium, steel, and aluminum. Trudeau also urged Canadians to reconsider travel to the US and boycott American products.
Meanwhile, China vowed to challenge the tariffs at the World Trade Organization and hinted at additional countermeasures. The trade war’s escalation has raised concerns about its potential to dent global growth, reignite inflation, and cause severe disruptions to already fragile supply chains worldwide.
Earlier after taking over as President, Trump had signaled his aggressive stance on tariffs, targeting not just China, but also naming India and Brazil as high-tariff countries. “We’re going to put tariffs on outside countries and outside people that really mean harm to us,” Trump said during an event in Florida, accusing countries like India of imposing unfair barriers on American goods.