I am optimistic that the warnings that President Trump is giving to India will not come to fruitionHe is trying to do what he has done with other countries, working out some sort of a trade deal, Peter Cardillo, Chief Market Economist, Spartan Capital Securities, tells ET Now.
Trump has said that he is planning to impose a mirror tax on India which is also a reciprocal tax on India on back of heavy duties that we impose on American goods coming into India. What is your view that and how much of this can become a reality?
China also came out and cut its GDP forecast for 2019. Do you see trade war impacting their economy now? Would US cut its economic growth outlook on the back of trade wars?
There is no question that the trade war has impacted the Chinese economy. I believe that the economy is going to grow between 6% and 6.5%. It is basically not very far from where we are now and basically I would consider that a soft landing. There seems to be no doubt that perhaps sometimes later this month, there will be a Chinese accord with the United States. But we are not looking at a hard landing. I would consider it more of a soft landing and that is good news for the rest of the emerging
How do you see the emerging markets reacting to this kind of news? Should the soft landing for the Chinese economy be a positive on the emerging markets?
I believe so and there is a lot of money flowing into the Chinese markets now. I would expect that is going to be an offspring and other emerging markets will enjoy the fruits of this.