“We think there is not apparently, a willingness for retaliation, but more for sooner start of negotiations,” Issel said, referring to countries like India, Japan, and Korea.
He also stated that Indian IT services remain unaffected, as the current tariffs largely target goods, not services. “IT service companies… are off the hook, as we had expected,” he added.
However, Issel flagged some selective risk for India’s pharma sector, especially if the US imposes product-specific tariffs on generic drugs. But he stated that given the low margins in generics, “that would be an issue, maybe also for the US,” hinting that such tariffs could backfire.
Also Read: Indian specialty chemical makers expect export gains as US tariffs hit rivalsOn the broader market outlook, Issel expects that clarity on tariffs should emerge by the third quarter (July-September of CY2025) as countries actively engage in negotiations. He said the current uncertainty is likely temporary, and “the peak on the tariff side… starts to come down a little bit afterwards.”
Until then, markets are expected to remain range-bound and cautious, especially as investors await more formal announcements and reactions from major economies like China and the EU.
Also Read: Dixon Tech CFO on US exposure and the likely impact of tariffs on business
According to Issel, the ongoing developments are not unprecedented, and similar past episodes suggest that tensions can be eased with back-channel diplomacy.
For the entire interview, watch the accompanying video
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