Donald Trump\u2019s recent announcement of potential tariffs \u2014 including a 25% duty linked to Russian oil imports impacting India \u2014 has caused a stir in trade and market circles. But Prashant Khemka, Founder of White Oak Capital, believes there’s more politics than policy in play.<\/p>\n
\n\u201cIt is a negotiating tactic,\u201d Khemka explained. \u201cTrump is playing two cards \u2013 Russia and India \u2013 at the same time.\u201d<\/p>\n<\/blockquote>\n
In an exclusive interview with Moneycontrol, the seasoned fund manager explained how tariffs tied to Russian oil serve a dual purpose: making a statement in the Russia-Ukraine context while using India as leverage in final-stage trade talks.<\/p>\n
India Unlikely to Suffer Long-Term Damage<\/h2>\n
Despite the aggressive tariff posture, Khemka remains confident that India will emerge relatively unaffected.<\/p>\n
\n\u201cIn all likelihood, the 25% Russian oil-led tariff will go away, which would be a decent outcome for India,\u201d he said.<\/p>\n<\/blockquote>\n
Markets, he pointed out, are not currently pricing in a worst-case scenario of tariffs going up to 50%. A more realistic landing zone would be below 25%, which would keep India on a neutral or even positive footing compared to global peers.<\/p>\n
\n\u201cIf duties settle in the teens or under 20%, that\u2019s actually a win for India,\u201d he added, drawing comparisons to how Bangladesh and Vietnam have managed similar tariff levels.<\/p>\n<\/blockquote>\n