World Trade Is Up for a Shake with Trump's Tariffs
U.S. President Donald Trump has levied tariffs on every country involved in trade with America, paying no heed to economic status or alliance. His tariffs vary between 10% and 49% on traded goods, affecting global markets quite adversely. The U.S. has imposed 26% tariffs on our nation, whereas China has 34% and the European countries have 20%. These tariffs, which were made public at a White House press conference, were put into immediate effect through an executive order. Trump characterized some of these tariffs as "concessional," saying they were lower than they had originally been planned as a gesture of goodwill.
Heavy Tariffs on South Asian Nations
Trump's tariff policy has significantly affected South Asian countries, such as Vietnam, Sri Lanka, Bangladesh, Pakistan, and Cambodia. These nations have a high level of impediments to exporting products to the U.S.
'Promoting Domestic Manufacturing' – Trump's Rationale
Trump rationalized his trade policies by asserting:
- Increasing local industries and generating new employment opportunities.
- Inducing businesses to move back to the U.S.
- Improving global competitiveness for American firms.
- Providing products at reasonable prices locally.
He contended that although America has traditionally cut back on trade barriers, there are still high tariffs imposed on U.S. products by other nations.
Trump's Position Towards India and Other Countries
Trump complimented Indian Prime Minister Narendra Modi as being a great friend but condemned India's 52% tariffs against U.S. products. According to him, in trade even a friend could be more threatening than an enemy.
Interestingly, Trump even imposed tariffs on unpopulated islands occupied by Australia, like Heard Island and McDonald Islands, putting a 10% tariff on products originating from these places.
Economic Impact and International Reactions
The imposition of these tariffs has brought huge turmoil in the global markets.
- European Commission President Ursula von der Leyen declared that the tariffs were a dire blow to the world economy.
- Australian Prime Minister Anthony Albanese said that no one is safe from Trump's tariffs anywhere in the world.
- Japan's Prime Minister Shigeru Ishiba threatened strained U.S.-Japan relations because of these policies.
- South Korean Prime Minister Han Duk-soo called for support for industries hurt by the tariffs.
- China called for an immediate withdrawal, threatening to harm global economic growth.
- Canada's Prime Minister Mark Carney promised to retaliate with tariffs in return, citing damage to millions of Canadians.
- British Prime Minister Keir Starmer condemned the trade war, stating that it serves no one and vowed to battle the tariffs.
- Germany, Spain, and Brazil have also threatened countermeasures against U.S. tariffs.
India Faces Additional Tariffs
Trump ratified that India would be subjected to an extra 52% tariffs on U.S. imports, although he assured that only 26% is being implemented right now. According to White House reports, though, an extra 27% duty will also be imposed in the near future, further pushing Indian trade to the limit.
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