NEW DELHI: JP Morgan CEO Jamie Dimon has suggested that the US, in its effort to make trade fairer for the nation, need not ask “non-aligned nations, like India and Brazil” to align but “can bring them closer” by “extending a friendly hand with trade and investment.” This comes as Donald Trump’s 10% tariffs on all US imports kick in.
“We already trade with most nations on the planet – and, of course, we should always be trying to make it better and fairer for America. Deepening high-standard trade with key trading partners is good economics and great geopolitics. And we don’t need to ask many non-aligned nations, like India and Brazil, to align with us – but we can bring them closer to us by simply extending a friendly hand with trade and investment,” Dimon said in his annual letter to the shareholders.
The introduction of a 26% tariff on Indian imports, coupled with increased duties on countries like China, has escalated global trade tensions and triggered sharp declines in Asian stock markets on Monday.
Noting the enormity of global trade, Dimon said, “The United States lacks trade agreements with some of its closest allies, many of whom have signed trade deals with China. We should more actively be seeking free (and, of course, fair) trade agreements, particularly with strong allies like Australia, Japan, the United Kingdom and – we hope one day – the European Union. These can be done in a way that is clearly beneficial to both sides.”
“Global trade is enormous, amounting to approximately $20 trillion a year, of which only $2.5 trillion is with the United States. And global trade will take place with or without us. We should remember that other nations have choices, both in the short term and in the long term, and they will make these choices in their own self-interest based on economics, security and reliability,” he added.
India has not taken China’s route of retaliatory tariffs so far. The country’s merchandise exports to the US are expected to drop by $5.76 billion this year due to increased tariffs, according to the Global Trade Research Initiative (GTRI). Key sectors like marine products, gold, electronics, and electrical goods will be most affected. However, India’s competitiveness in some product segments may help offset part of the decline.