India-US trading transaction: Trump threatens 20-25% rates on India. How can you position your portfolio in the midst of uncertainty? | Einsmark news

India-American trading transaction: While trading transaction with the US remains elusive, US President Donald Trump fired a new salvo, warning of possible higher rates before August 1. Trump said India could be hit from 20% to 25% with a tariff rate, while warning that the final levy had not yet been finalized, according to a Bloomberg report. Many major economies such as Japan and the European Union have already signed trade agreements with the US. And a rate of 20% or higher would be a disappointment for India, who sought a better agreement than the 19% offered by Trump Indonesia and the Philippines. India and the US has so far held five rounds of talks, and a Washington trade team is expected to visit in New Delhi by mid-August, the Bloomberg report added. Meanwhile, an interim agreement appears to be unlikely before the August 1 deadline. Trump also threatened ‘secondary rates’ on India, China and other buyers of Russian oil if President Vladimir Putin did not end hostilities with Ukraine. What does the India-US trade transaction hold? India is not prepared to allow the US to export genetically modified crops to the country, and is not prepared to open its dairy and car sectors, according to various reports, causing a major roadblock. For India, agriculture and dairy are not just trade sectors; It is the backbone of rural livelihood, affecting more than 700 million people. Meanwhile, the US is urging for access to India’s high-tariff markets, especially in the Agri and Digital sectors, while rates are increasing on Indian steel, aluminum and car exports. This asymmetry has brought the progress to a halt, said Sankhanath Bandyopadhyay, economist at Infomerics Valuation and Ratings. Trump threatens 20-25% tariff: The market can see the impact of the knee pressure according to Ajit Mishra of Religare Broking, it is unlikely that Trump’s threats will be realized. “It seems like a statement to speed up this process, because US peers appear to be visiting India and searching for further negotiations.” But after he said, in case of higher rates, there may initially be a reaction on the knee because the market does not discount anything extremely positive about the transaction front anyway, Mishra added. However, markets would not respond very strongly because they are more focused on domestic factors such as earnings, he said. Harshal Dasani, business head, Invasset PMS, also believes that this rhetoric in the midst of continuous deglobalization and tariff adjustments can weigh on the sentiment to Indian exporters-but the market’s reaction will be sector specific, not systemic. Sectors that are export-heavy, such as IT, pharmaceutical products and textiles, are likely to have the bulk of the impact, which may face sharp corrections, on the kept up to Ghawalkar, market analyst, share.Market. How can you manage your portfolio in the midst of tariff uncertainty? Against this background, analysts advised investors with a short-term view to be careful. “The lack of clarity on potential policy changes is likely to drive the volatility of the market in the short term, especially in export -oriented sectors. In this uncertain environment, accepting a defensive investment strategy can be wise. Shifting to the focus to sectors less exposed to international trading dynamics or investment in fundamentally strong large cap with limited shares. to reduce. ” He also said that the holding of a higher cash position can provide tactical flexibility, which allows investors to act quickly as and when the development unfolds. Meanwhile, Mishra said it is wise for short -term investors that they should continue to trade with stop losses in place, especially when it comes to the long trades in pharmaceutical suits. As for the IT package, Mishra recommended that investors consider it an opportunity to collect shares for the long term. Long -term investors should remain and not worry about the market response, he added. Dasani, who comments on the sectors that investors can expose, said the short -term strategy should tilt to domestic sectors such as finance, capital goods and cars, which is better isolated from trading. “On the other hand, a correction in export-centric sectors, chemicals and electronics can create a tactical congestion window. The long-term thesis remains solid. A delayed agreement does not mean a dead. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.