Post tariff tantrum, expect a correction in short term; more positive on India in H2: Manishi Raychaudhuri

Manishi Raychaudhuri, Veteran Investor, says India is somewhere in the middle of the pack. Headline tariffs show that some Southeast Asian countries have been slapped with much larger tariffs. So all this is playing out, and the market did not have a drastic fall post the tariff announcement. However, we should not lull ourselves into a sense of security, just going by what we are seeing today.

Tariffs at the rate of 34% have been slapped on China, add 20% of historical tariff and that makes it 54%. It is 26% in India, 40% in Vietnam and when such tariffs are slapped, financial markets get into a panic mode. But that is not happening. It is a good morning for Asia this morning. Markets have recovered from the day's low. Are markets getting complacent or it is time to move on?
Manishi Raychaudhuri: To some extent, there is the possibility of demand retrenchment across the world, but particularly in the United States, that situation has not yet been factored in. The initial reaction of the market despite this is what I call a nuclear trade, almost a ‘nuclear battle’ in a sense in the trade regime.

Despite this, the market's reaction has been calm and honestly, it is a bit of a surprise to me. One of the reasons is that the markets are beginning to understand that 2025 is not 2018. Some of the large exporters to the United States are far less leveraged than the US. This time around, China's proportion of exports has come down from about 20-25% to less than 15%. There are other markets like Korea and Taiwan, which are