Trump tarifs: US President Donald Trump had announced the implementation of reciprocal tariffs from 2 April, which could affect the economy of many countries, especially India, China and Europe. According to reports from Bloomberg and Wall Street Journal, area-specific tariffs will be excluded, which means that the proposed tariffs will not be implemented first on some industries or countries. According to these reports, it can be said that this is a relief for India.
What is Trump’s reciperook tariff policy?
The Trump administration argues that if a country imposes high tax on American products, then America will also impose equal tax on the products of that country. For example, if India imposes 10% import duty on American products, then the US will also apply a counter -tariff of 10% on Indian products. According to Trump, this will make America’s trade policy more fair.
Which products were to be charged?
In February, Trump said that he plans to impose a 25% duty on automobiles. The semiconductor and pharmaceutical imports will also implement the same duty on imports, but after the pressure of the three largest automobile companies in the US, the administration decided to postpone some auto tariffs.
What will happen on 2 April? Why was the area-specific tariff removed?
According to a report by Bloomberg News and Wall Street Journal, the area-specific fees will no longer be announced on April 2, but the White House is still planning to implement the reciperoke fee. The policy remains unstable and the final decision will be taken by 2 April.
US Treasury Secretary’s statement
US Treasury Secretary Scott Besent indicated that some charges could be postponed, but the White House has not yet made a clear statement on it. At the same time, the White House said, “We still intend to apply reciperook tariff from 2 April.” However, according to officials, this policy is still not finalized.
Impact on global economy
India is a major trading partner of America. If the reciperookal tariffs are applied, Indian pharmaceutical, IT and automobile sector may be affected. Indian companies may suffer losses due to expensive products in the US.
Impact on China and European Union
The trade war is already going on between China and America. If the tariffs grow, China’s electronics and tech industry may get a shock. The European Union is a major consumer in the US automobile and technology industry. America’s new tariffs can cause damage to European car companies (BMW, Mercedes).
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