Tuesday, August 19, 2025
HomeBusinessTrump may ease tariffs, India still attractive

Trump may ease tariffs, India still attractive

Mumbai

US broking firm Jefferies has advised its clients to buy Indian stocks, saying President Donald Trump is likely to soften his stance on high tariffs. The firm believes India remains a strong investment opportunity despite short-term challenges.

Christopher Wood, a senior analyst at Jefferies, said Trump’s tariff moves are not in America’s long-term interest and will eventually be reversed. He added that past experience shows it pays to resist Trump’s aggressive policies. Wood also warned that Trump’s actions could push BRICS countries — Brazil, Russia, India, China, and South Africa — toward de-dollarisation, meaning they may trade using currencies other than the US dollar.

Jefferies has maintained a bullish outlook on India, highlighting it as the strongest long-term growth story in Asia. However, Indian markets have underperformed compared to global emerging markets over the last year, marking the worst such period in 15 years. Even so, the firm continues to hold a “marginal Overweight” stance on India in its Asia ex-Japan strategy.

Indian equities are now valued at 20.2 times one-year forward earnings, down from 22.4 times at their peak in October 2021. While valuations remain high, Jefferies expects growth potential to sustain investor interest.

Meanwhile, trade tensions between India and the US continue. Washington has already imposed a 25 per cent tariff on Indian exports and plans to add another 25 per cent duty starting August 27. A planned visit by US trade representatives to New Delhi later this month may also be rescheduled due to these tensions.

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