On Monday, Nithin Kamath, the CEO of Zerodha, spoke out about U.S. President Donald Trump’s “America First” trade policies. He expressed concern that Trump’s tariffs on goods from China, Canada, and Mexico could make the U.S. less connected with other countries.
In a post on X (formerly Twitter), Kamath said it feels like everyone is under the ‘U.S. empire’ because of these tough policies. He worried that this style of trade might actually weaken America’s influence around the world, with new trade rules disrupting trade and causing problems for everyone.
Kamath pointed out that China has become the biggest trading partner for over 120 countries, strengthening its global position while the U.S. tries to protect its own interests. He shared a graphic that showed how China is gaining economic power, especially in Asia, Africa, and Latin America, while the U.S. sticks to its protectionist policies.
While Trump believes that increasing tariffs will make the U.S. economy stronger, Kamath has doubts. He asks whether the “America first” approach might backfire. He also highlighted the challenge of raising tariffs when the world is so interconnected. “How can you increase tariffs without hurting yourself and others?” he questioned.
Trump’s latest trade threats have caused worries in financial markets. On Monday, stock futures in the U.S. fell as investors prepared for possible reactions from Canada, Mexico, and China. Canada might place tariffs on U.S. goods, and China has promised to protect its trade interests.
This situation has made investors nervous, especially in the car and tech sectors, leading them to favor the U.S. dollar and Treasuries instead. Meanwhile, Mexico and Canada are planning their retaliatory steps, and China intends to challenge Trump’s tariffs at the World Trade Organization (WTO).
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