US Tariff Ruling: Negotiation Window Opens, Risks Remain, Says DBS' Taimur Baig

• DBS' Taimur Baig cautions against premature celebration of US tariff ruling, stating it prevents worsening but doesn't eliminate risks.
• The ruling provides room for discussions and defending positions, reducing downside risk rather than creating upside opportunity.
• It constrains the US administration's ability to abruptly deploy tariffs as a negotiating weapon, ending 'willy-nilly approach to tariff diplomacy'.
• Sector-specific tariffs may still appear but will undergo investigations and legal processes, moderating risk for India and exporters.
• Lower tariff pressure impacts US inflation, interest rates, and the dollar, with a 'short dollar narrative' supporting emerging-market currencies like the rupee.