“When Prime Minister Modi is making these kinds of tax breaks for its own citizens to increase domestic consumption, it’s because of a fearful tariff environment.” – 01:48
Kerim Kfuri, President & CEO of The Atlas Network, joins Remy Blaire at the New York Stock Exchange to discuss the evolving landscape of global trade and its implications for the U.S. economy.
The discussion begins by breaking down the recent trade agreements the U.S. has established with 20 countries, including major economies like the EU, Japan, and the U.K. However, the pair highlight the ongoing negotiations with China and Mexico, which are currently in a trade truce, while Canada faces significant challenges with a 35% tariff rate. The episode also touches on the visible effects of U.S. tariffs on macroeconomic data, including rising food prices as noted by Federal Reserve Chair Jerome Powell, and a notable drop in the U.S. trade deficit.
Shifting focus to India, Kerim explores how the country’s tax cuts aimed at boosting domestic consumption are impacting global supply chains. Kerim explains that while these measures may stimulate local buying, they could simultaneously hinder exports, leading to increased scarcity and rising prices in critical sectors such as pharmaceuticals, automotive, and agriculture.