Trump Vows Reciprocal Tariffs Against India, China

Aakhir Tak – In Shorts

• Trump warned of reciprocal tariffs on India, China, and others starting April 2.
• 25% tariffs already imposed on Canada and Mexico, triggering retaliatory measures.
• Trump claims other countries have unfairly tariffed the US for decades.
• Reciprocal tariffs aim to boost the US economy and create jobs.
• China retaliated with tariffs of up to 15% on US agricultural products.

Aakhir Tak – In Depth

US President Donald Trump has promised to impose reciprocal tariffs from April 2 on most of America’s trading partners, including India, for “having trade policies that are unfair to Americans.” This announcement followed new 25% tariffs on Canadian and Mexican imports. These actions, coupled with doubling duties on Chinese goods to 20%, have sparked concerns over escalating trade wars. The US’s three largest trading partners have already announced retaliatory measures against the US, intensifying global economic tensions.

“Other countries have used tariffs against us for decades, and now it is our turn to start using them against those other countries. On average, the European Union, China, Brazil, India and countless other nations charge us tremendously higher tariffs than we charge them. It is very unfair,” Trump said during his joint address to the US Congress. This address was his first since assuming office in January.

He further elaborated, “India charges us tariffs higher than 100 per cent, China’s average tariff on our products is twice what we charge them and South Korea’s average tariff is four times higher. This is happening by friends and foe. The system is not fair to the US; it never was. On April 2, reciprocal tariffs kick in. Whatever they tax us, we will tax them,” Trump said. He also noted that he did not want to make the announcement on April 1 since it is April Fool’s Day.

Trump also asserted that if trading partners “use non-monetary tariffs to keep us out of their market, then we will use non-monetary barriers to keep them out of our market.” This suggests that the US may employ a wide range of trade restrictions to achieve its goals.

“We will take in trillions and trillions of dollars and create jobs like we have never seen before,” Trump stated. He added, “We’ve been ripped off for decades by every country on earth, and we will not let that happen any longer,” signaling a firm stance on trade negotiations.

Last month, Trump called on his administration to investigate plans for reciprocal tariffs on all the US’s trading partners. The completion of this investigation was expected by April 1. This underscores the administration’s commitment to reshaping global trade dynamics.

During his campaign, Trump repeatedly vowed to address what he called unfair trade practices by foreign countries. This promise has now materialized into concrete policy actions.

Just after midnight on Tuesday, Trump imposed 25 per cent taxes, or tariffs, on Mexican and Canadian imports. He limited the levy to 10 per cent on Canadian energy. Trump also doubled the tariff he slapped last month on Chinese products to 20 per cent, demonstrating a comprehensive approach to trade reform.

Canadian Prime Minister Justin Trudeau responded by announcing tariffs on more than $100 billion of American goods over 21 days. Mexican President Claudia Sheinbaum said she would respond to the new taxes with its own retaliatory tariffs on Sunday. These reciprocal actions highlight the potential for a global trade war.

China not only retaliated with tariffs of up to 15 per cent on American farm exports, but also expanded the number of US companies subject to export controls and other restrictions by about two dozen. These measures signal a deepening of trade tensions between the world’s two largest economies. The potential for increased global trade tensions following Trump’s reciprocal tariff announcement has raised concerns, with India and other nations considering their own retaliatory measures. Experts are debating the potential economic impacts of these tariffs. Some argue that they could harm American businesses and consumers. Others believe they could help the US negotiate more favorable trade agreements. The Trump administration maintains that these reciprocal tariffs aim to protect American industries and foster a fairer trading environment. The long-term consequences of this policy are likely to become clearer in the coming months as the global trade landscape continues to evolve. The Indian government has not yet issued an official response to Trump’s reciprocal tariff announcement. However, government officials have indicated that they are closely monitoring the situation and will take necessary measures to protect the interests of domestic industries.

Aakhir Tak – Key Takeaways to Remember

• Trump announced reciprocal tariffs from April 2, impacting India and other nations.
• New tariffs imposed on Canada and Mexico have resulted in retaliatory actions.
• Trump argues other countries impose unfairly high tariffs on the United States.
• These tariffs aim to boost American jobs and economic growth.
• China has increased tariffs on US agricultural goods in response.

Aakhir Tak Editor-in-Chief

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