Let America pay for tariffs for a while, says Deepak Shenoy of Capitalmind

Reciprocal tariffs, announced by US President Donald Trump, might have a long-term, negative impact on the global economy, warned Deepak Shenoy, founder and CEO of CapitalMind over an 'X' post.

Trump Tariffs: In a move that has sent shockwaves through global trade, US President Donald Trump on Thursday unveiled a far-reaching and aggressive "reciprocal tariff" policy, designed to retaliate against nations with high tariffs on American goods. 

 

Reciprocal tariffs, announced by US President Donald Trump, might have a long-term, negative impact on the global economy, warned Deepak Shenoy, founder and CEO of CapitalMind.

 

“There isn't even a need for retaliation, honestly. Let Americans pay for this for a while and see how it pans out,” Shenoy said in a social media post on 'X'. 

26% tariffs on Indian exports to the US. 54% effectively on China. Tariffs on nearly every country.  There isn't even a need for retaliation, honestly. Let Americans pay for this for a while and see how it pans out.

— Deepak Shenoy (@deepakshenoy) April 2, 2025

 

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  The announcement by Trump, made at the White House under the banner of “Make America Wealthy Again,” signals a dramatic shift in US trade relations, especially with countries like India, China, and the European Union.

 

Trump, in his address, voiced his frustration over what he described as unfair trade practices, particularly targeting India. He stated that the new tariffs would see a 26 per cent tariff imposed on all imports from India, which he argued was justified as a countermeasure to India's "very, very tough" 52 per cent tariffs on US products.

 

Trump, who referred to Prime Minister Narendra Modi as "a great friend," added, "He (PM Modi) is a great friend of mine. But I said, ‘You’re a friend of mine, but you're not treating us right.’ They charge us 52 per cent, but we charged them almost nothing for years and decades. And it was only seven years ago when I came in.”

 

The tariff plan also introduced a 10 per cent baseline tariff across the board, with majorly higher rates on specific countries. Among the countries affected, China will face a steep 34 per cent tariff, in addition to the existing 20 per cent tariffs, bringing the effective tariff rate to 54 per cent. The European Union will see a 20 per cent tariff, while Vietnam and Taiwan face tariffs of 46 per cent and 32 per cent, respectively.  ALSO READ | Explained: How will Donald Trump's reciprocal tariffs impact India?

 

While the tariff hikes are part of Trump's strategy to boost US manufacturing and trade balance, Deepak Shenoy, founder and CEO of CapitalMind, offered a more cautious and critical view of the potential repercussions. 

 

“26 per cent tariffs on Indian exports to the US. 54 per cent effectively on China. Tariffs on nearly every country,” Shenoy tweeted, reflecting on the widespread impact of Trump's new tariff plan.

 

The CEO went on to predict major shifts in global financial dynamics, raising concerns about the future of the US dollar. 

 

“I suppose it's not crazy if all central banks dump the US dollar and move to euro bonds or JPY for reserves. No point using USD as currency any longer since they won't import from you meaningfully. Things will change slowly but surely."

 

Describing the tariff strategy as “a very scorched earth strategy by the US,” Shenoy highlighted the potential market turbulence ahead.   ALSO READ | 'Mixed bag, not setback': Govt analysing impact of 26% Trump tariffs

 

"This will impact markets negatively perhaps. The big plus is that most of the uncertainty is gone, and the ‘find out’ part of the FAFO for Americans now actually begins,” he concluded. 

Meanwhile, at 9:33 AM, BSE Sensex was trading 0.53 per cent lower at 76,213.54 levels. Similarly, Nifty50 was trading 0.40 per cent lower at 23,239.60 levels.