America first or global backlash? Zerodha’s Nithin Kamath questions Trump’s tariff strategy

Zerodha CEO Nithin Kamath on Monday cast doubt on the effectiveness of U.S. President Donald Trump’s “America First” trade policies, suggesting that the tariffs aimed at China, Canada, and Mexico could isolate the U.S. on the world stage. Kamath, in a tweet on X, formerly Twitter, expressed concern that Trump’s approach makes it feel as though “we are all subjects of the ‘U.S. empire’”.

Kamath questioned whether Trump’s aggressive tariff policies could ultimately weaken the United States' global influence, as fresh trade restrictions threaten to disrupt international commerce. “The way Donald Trump has gone about imposing tariffs and making statements about other countries makes it feel like we are all subjects of the ‘US empire,’ if it wasn’t evident till now,” Kamath wrote in a post on X.



His remarks come after Trump announced sweeping tariffs—25% on imports from Canada and Mexico and 10% on goods from China—intended to curb trade imbalances and immigration. The move has drawn criticism from economists who warn of supply chain disruptions, rising consumer prices, and retaliatory measures from key trading partners.

Kamath’s post also underscored the growing gap between trade and financial power, stating, “In terms of trade, China today is the largest trading partner for over 120 countries. In terms of financial and military dominance, the U.S. remains the most powerful nation, for now.”

He attached an infographic from the Lowy Institute, illustrating how China has overtaken the U.S. as the leading trade partner for most nations. The visual highlighted Beijing’s expanding economic clout, particularly in Asia, Africa, and Latin America, as Washington’s protectionist policies push more countries toward Chinese trade networks.

While Trump maintains that tariffs will strengthen the U.S. economy, analysts suggest they could backfire, a concern Kamath echoed: “The question is, will the stance of ‘America first’ backfire or not?”

He further challenged the logic behind raising tariffs in a deeply interconnected global economy. “In such a globalized and interconnected world, how can you increase tariffs, which will inflict collateral damage, and still hold on to power?”

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Trump's latest trade war rhetoric has already sent ripples through financial markets, with U.S. stock futures sliding on Monday as investors brace for potential retaliation from Canada, Mexico, and China. Canada is reportedly weighing tariffs on U.S. imports, while China has vowed to defend its trade interests.

Automaker and megacap tech stocks took the hardest hit during the broader market pullback, following Trump’s announcement of tariffs against Mexico, Canada, and China. The move sparked fears of a global trade war, raising concerns over its potential impact on economic growth.

In response, investors flocked to the dollar and U.S. Treasuries, while Mexico and Canada, the U.S.'s top trading partners, pledged retaliatory measures. Meanwhile, China announced plans to challenge Trump’s tariffs at the World Trade Organization.

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