A major decision of the US Supreme Court has suddenly created an earthquake in the world of global business. The court has outright rejected many major tariffs imposed by President Donald Trump during the Global Trade War. This was being seen as a major legal and political setback for Trump.
But within a few hours of this decision, he launched a strong counterattack. Trump issued a new order of 10 percent on imports from all countries. After this, he increased it further and announced the implementation of global tariff of 15 percent.
This decision and the new 15 percent rule have created a strange situation in the global market. While on one hand countries like India, China and Brazil have got a big relief, on the other hand some countries are in serious trouble.
The great door of progress opened for India!
Earlier, America had imposed heavy tax of up to 50 percent on goods going from India, due to which Indian exporters were suffering huge losses. Later this tax was reduced to 25 percent. Recently, there was an agreement between the two countries to increase it to 18 percent.
But after Friday’s court decision, this rate fell to 10 percent and then due to Trump’s new order it reached 15 percent. For India, this rate of 15 percent is also much better and more beneficial than the recently decided 18 percent. This is much lower than the huge level of 26 percent on Liberation Day.
On the other hand, China also seems to be very happy with this new change. Due to the removal of 10 percent fentanyl tariff due to the court decision, Chinese exporters are going to get a big relief in the American market. Making its stand clear, China has appealed to America that unilateral policies should end.
biggest blow to britain
Mexico is also among the countries that have directly benefited from the removal of taxes related to fentanyl, because they will no longer be charged these additional fees. But if anyone is suffering the biggest loss in this entire incident, it is definitely Britain.
Till now, Britain was getting a huge benefit from the low mutual tariff of 10 percent, due to which its trade was getting a special advantage. But Trump’s new strict decree of 15 percent has created a huge economic crisis for British companies.
According to the latest data of Global Trade Alert, Britain is going to get the biggest blow from this new change, followed by Italy and Singapore. The British Chambers of Commerce has clearly warned that this new tariff will impose a huge burden of about 4 billion dollars on British exporters.
This huge economic shock is going to have a direct and negative impact on about 40,000 British companies and their operations. The British government is making every possible effort to deal with this serious situation. Cabinet Minister Bridget Phillipson clarified that they are in intensive talks with the US administration at the highest level.
Will Europe stop trade deal?
This new decision of Trump, which came just a day after the historic order of the Supreme Court, has angered the European Union countries as well. The European Commission has said in clear words that America should respect the trade agreement signed with the European Union last year at all costs.
The Commission has used strong words in its statement, reminding that a deal is a deal and both the parties should stick to their commitments. Last year itself, an important agreement was reached between the US and the European Union that the US tariff on most European goods would remain at a maximum of 15 percent.
The European Union says that as America’s largest trading partner, it hopes that Washington will not go back on its promises. Now after the announcement of this new global tariff, the European Parliament’s trade chief has proposed to take a very tough step.
The European Parliament has made full preparations to stop the process of ratifying its trade agreement with America. Chairman of the Parliamentary Trade Committee, Bernd Lang, has made it clear that he will stop the legislative work to approve this deal with immediate effect.
He says that until the complete legal details and clear commitments of the new trade policy are not received from the Trump administration, it will not be possible to move forward on this agreement. The eyes of the whole world are now on America’s next trade steps.
Also read- 26% to 50% and then 15% in one year. How did the tariff game go on between America and India? This is the complete timeline