Donald Trump
US President Donald Trump’s new tariff policy has created economic stir worldwide. From developed countries like India, Canada, UK, Japan to developing countries like Laos and Algeria, everyone is struggling with the impact of this tariff. The direct impact of these heavy tariffs, which come into force from 7 August, is beginning to appear on American markets and global trade.
Experts believe that this step of Trump can harm not only others but also America. According to Barry Appleton, the co-director of the Center for International Law at New York Law School, “There may be no winners in this policy. Most countries will have to suffer losses and America will not be untouched by it.”
Now no rules, deals are directly threatened
Trump has almost broken the old global economic system after being re -held in the presidency. Now the trade policy in America is being decided at the will of the President instead of the rules. Trump is pressurizing those countries who do not believe their terms and recover concessions from those who believe.
According to Elon Wolf, former US business officer and Deputy Director General of the World Trade Organization (WTO), Trump played the bet that he could threaten the countries to the conversation table and he has also been successful in it. This series started from April 2, which is being described as Liberation Day of Trump. On the same day, he announced to impose up to 50% recipes on trade deficit countries, while the rest of the countries imposed 10% baseline tax.
He declared the trade deficit as a national emergency, citing an old US law of 1977, which gave him the right to tax directly to tax. The move sidelined the role of the US Congress and now this decision is facing a challenge in the US courts.
US President Donald Trump
Rich countries did not spare
Trump’s tariff policy has the most spicy impact on those countries whose economic condition is already weak. The per capita annual income of a country like Laos is just $ 2100, and Algeria’s $ 5600, yet they have been imposed import tax of 40% and 30% respectively. On the other hand, America’s per capita income is around $ 75,000.
50% tax imposed on Brazil was the reason that Trump did not like the policy of former Brazilian President Bolsonaro. At the same time, 35% tariff on Canada was imposed that Ottawa had indicated to recognize Palestine. It is clear that the tariff has now become a diplomatic weapon, not just a business policy.
Those who believe in the country, they are also not relieved
Countries who obeyed Trump are also not relieved. For example, Britain will now have to pay 10% tax on selling goods in the US, while earlier it was just 1.3%. The European Union and Japan have also accepted the condition of 15% tax – although this rate is less than the original threat of Trump, but still much higher. Countries like Pakistan, South Korea, Vietnam, Indonesia and Philippines have also compromised with Trump, and now they will have to pay more tax than before.
Price increased in America itself, the poor affected the poor
The effect of tariff is not limited to international trade only. Its burden is also clearly visible on the pockets of American consumers. Experts say that everyday consumers like sneakers, TV, electronics, bags and video games in America have now become very expensive. The reason is that these products are not produced in America.
According to Yale University experts, due to this tariff policy, an average American family has to bear an additional cost of about $ 2400 (about two lakh rupees) annually.
The average import tax in the US in 2018 was 2.5%, which has now reached 18.3% by 2025 – this is the highest level since 1934. According to Alan Wolf, “American consumers are the biggest victims of this policy. They are now paying additional tax on every purchase.”