US softening on China tariffs brings little relief from trade uncertainty: Garima Kapoor

Even as U.S. President Donald Trump signalled a softening stance on tariffs imposed on Chinese imports, global trade may continue to operate under heightened uncertainty, according to Garima Kapoor of Elara Capital.

In an interaction with ET Now, Kapoor reflected on the recent remarks by President Trump, who suggested that while tariffs on China may come down, they are “not going to zero as of now”, leaving room for partial relief but continued friction between the world’s two largest economies.

She emphasised that the evolving trade relationship between the two economic superpowers is setting the stage for a “new normal” in global commerce.

Kapoor noted that much will depend on the nature of discussions and consultations between the two countries. However, she pointed out that the days of extremely low U.S. tariffs could be over.

“Fair to assume that US’ average tariff, which used to be about 2–2.5%… is unlikely to stay there,” she said, adding that the “average tariff is expected to come up, maybe in the handle of about 10 odd per cent”.

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