US President-elect Donald Trump's upcoming tariffs, which will be implemented after his inauguration, could have a positive impact on India's export sector, according to Jyoti Jaipuria, founder and managing director of Valentis Advisors.

However, this move may prompt China to devalue its currency in order to maintain its export competitiveness, potentially leading to a series of competitive devaluations across emerging markets, which could destabilize the region.

Analysts from Bloomberg News predict that the yuan may reach a level against the US dollar that has not been seen in 17 years in the coming year, with expectations of a decline of around 10%. This situation is reminiscent of the events of 2015 when China, which was labeled a 'currency manipulator' by Trump, unexpectedly devalued its currency in response to a strengthening US dollar, with the aim of supporting its slowing economy. This decision resulted in significant capital outflows and a decrease in China's foreign exchange reserves.