Since Donald Trump’s victory in America, the news about increasing tariffs has increased. It is believed that Donald Trump may increase tariffs on countries like China, Canada and Mexico. Meanwhile, in the report of global investment bank Morgan Stanley, it has been said that Donald Trump’s increase in tariffs will have less impact on Asian countries India and Japan. The brokerage firm hopes that due to the mixed policy of these two countries, the increasing tariffs will not have much impact on them and their policies will continue as before.
Morgan Stanley’s team said that American tariffs were not imposed on 70 percent of Japan’s products because it was not easy to impose tariffs on those products. In this context, it is being estimated that Japan will have to bear the brunt of American tariffs less than India.
India is the country that imposes the highest tariffs – Trump
During the US presidential election, Donald Trump had said that India imposes the highest tariffs. According to World Trade Organization (WTO) data, India’s tariff rate on US imports was increased to 9.5 percent in 2022. However, India withdrew tariffs on major US products like apples and other agricultural commodities in September 2023. According to the brokerage report, if America imposes 10 percent tariff on goods imported from India to America, then India’s economic growth may decline by 30 basis points.
China will suffer the most loss
In his speeches during the presidential election, Trump had repeatedly talked about increasing taxes on goods imported into America, in which he had mentioned imposing higher taxes on goods coming from Canada, Mexico and China. According to media reports, America will impose 25 percent tariff on Canada and Mexico and 15 percent on China. Whereas, a tariff of 15 percent has already been imposed on China by America. In such a situation, China will have to pay 30 percent tax to sell goods made in its country in America.