Trump tariffs a 'multi-fold geopolitical risk' for world economy, says ABSL AMC's Mahesh Patil

Global equity markets are pricing in a 'multi-fold geopolitical risk', expecting more than a bilateral trade war to play out on the global arena, Mahesh Patil, CIO at ABSL AMC has said, as Trump's tariff onslaught continues to unravel before the world economy.

Both CIO Mahesh Patil as well as Kaustubh Gupta, Co-CIO - Fixed Income said the tariff rates suggest that President Trump may not be entirely be looking to use them as a negotiating tactic. "The steep rates of tariffs indicate that President Trump is inclined to use them to reset the global trade order unlike initial market expectations of using them solely as a negotiation tool," ABSL AMC's Mahesh Patil said.

ABSL AMC's Kaustubh Gupta hoped that countries will attempt to settle the trade talks, or sign bilateral treaties soon, to settle the uncertainties. India has been in talks with USA for a bilateral trade agreement with America, along with FTAs with UK, EU and other major economic regions. Not being too export-reliant has meant that the impact on India has been relatively less severe compared to Asian peers, who are also facing steeper tariffs by Trump administration. The selloff across asset classes, including crude oil, might turn out to be blessing in disguise for India, ABSL AMC said, given that the nation is a large importer of crude.

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