Donald Trump
A shocking news has come from Washington. US President Donald Trump is working on a plan that seems strange to hear but if implemented, then it can prove to be very good news for the common American citizens. According to a report by the news agency Reuters, Trump says that he can consider dividing a part of the money that he is collecting through tariffs from other countries. That is, the income levied on imports from many countries including India can directly benefit American citizens.
People will benefit from tax?
Last week, Trump announced to impose 25% tariff on goods coming from India. This tax can be implemented from August 7. On this day, Trump also indicated that a part of the amount earned from the tariff can be divided among the people. Trump’s argument behind this scheme is that when foreign companies pay huge tax to sell goods in the US market, then the government will get a huge amount and the government can directly give that amount to its citizens. This is the same as companies divide their shareholders out of profits. Although no official announcement of this scheme has been made so far, Trump’s statement is being considered a big political sign in itself.
How much tariff was placed on which countries?
India is not the only country, on which America has imposed heavy tax. The Trump administration has increased import tax on a total of 69 countries, many of which have been the traditional trading partners of America.
| country area | Tariff (%) |
| Canada | 35 |
| Brazil | 50 |
| Switzerland | 39 |
| Taiwan | 20 |
| European Union members | 15 (average) |
| Japan | 10 |
| South Korea | 5 |
| Syria | 41 |
| Laos | 40 |
| Myanmar | 40 |
| Iraq | 35 |
| Serbia | 35 |
The aim of these tariffs is to promote domestic products and pressurize foreign companies so that they produce in the US.
Tax tussle with China
Trump has a long tariff war with China. At one time the import of import tax on China reached 145%. Although the conversation between the two countries started later and there was some softening of tax to some extent, but so far no permanent agreement has been reached. The Trump administration says that it is necessary to take tough decisions to create a business balance with China. US Finance Minister Scott Besant recently said that the two countries are moving towards ‘balanced trade agreement’.
Will the people of America really benefit?
If the plan to divide the earnings from tariffs is applicable, then it will be a unique example for the world. This will be the first time that the common people will get the benefit of tax earnings received from global trade. But there are many questions related to it:
- What amount will the government give to the public?
- Will it be found once or again and again?
- What will affect US inflation with this scheme?
The answers to all these questions are not clear yet. But one thing is definitely, Trump wants to further increase its popularity through this scheme.