US President Donald Trump has announced a new tariff package on 2 April, which he is describing as America’s economic freedom. Under this tariff policy, heavy duty has been imposed on imported products coming from many countries.
Trump claims that this policy will strengthen America’s domestic industries, but experts believe that this can create a big upheaval in global trade. Trump has announced 26 percent tariff on imports from India.
Major announcements and implementation scheme:
Universal tariff:
A minimum tariff of 10% will be implemented on all imported goods. This new fee will be effective from 5 April 2025
Additional fees on special countries:
- China and Taiwan: 32% tariff
- European Union (EU): 20% tariff
- Japan: 24% tariff
- India: 26% tariff
- Vietnam: 46% tariff
- South Korea: 20% or more tariffs
- Canada and Mexico: 15% tariff
Special tax on vehicle industry:
A tariff of 25% will be applicable to all foreign manufactured cars. Its purpose is to promote vehicle manufacturing in America.
Implementation and Monitoring:
This tariff policy will be applicable under the US Trade Representative (USTR) and the Department of Commerce. Countries with business imbalances will be reviewed every three months.
Tariff’s possible impact on America:
1.Advantage,
- The American manufacturing sector will be encouraged. Domestic industries will get protection from foreign competition. Possibility of increase in jobs.
2. Personal:
- Imported goods can be expensive, which will increase inflation. Business partners can impose counter -tariffs, affecting American exports.
- American companies will increase production expenses due to increase in the cost of raw materials.
Global response:
- China: Condemning Trump’s decision, warned of possible retaliation.
- European Union: The US is planning to take equal steps to respond to tariffs.
- India: The government is evaluating the impact of this tariff and considering possible options.
- Canada and Mexico: The USMCA has reacted strongly as a violation of the USMCA trade agreement.
Will this policy be beneficial for America?
President Trump claims that this policy will strengthen America’s economic sovereignty, but economic experts believe that this global trade can give rise to war. Inflation is likely to increase in the US, while other countries can also implement counter -tariffs, which can cause damage to American industries.