Donald Trump has imposed a 50 percent tariff on India.
There is a discussion of US President Donald Trump’s tariff worldwide. Trump had earlier imposed a 25 percent tariff on India and now on Wednesday, he put 25 percent more tariff. America has so far imposed a total of 50 percent tariff on India. India has also responded to this. The Ministry of External Affairs has clearly stated that the US President’s tariff decision is inappropriate, unjust and irrational.
Now the question is, where did the word tariff come from, what does it mean, when did it first use it and why do the countries of the world install it? Before understanding this, they understand tariffs in easy language. Tariff is a kind of tax that a country imposes its own importance here. However, there are many reasons behind doing so.
What is tariff, understand 50 percent of the example?
You can understand tariffs with an example of America. America has imposed tariffs on India, which means whatever Indian things will be found in the US market will become more expensive. America has imposed a total tariff of 50 percent on India. Now we also understand the meaning of this.
Suppose the price of anything in India is 100 rupees. If it is to be sold in the US market, then 50 percent tariff will have to be paid. That is, 50 rupees will go to America. In this way, the price of that thing will be 150 rupees in the US market. If the price of something increases, its demand will decrease directly. That is, even after giving the tariff, it will be difficult to survive that product in the market because the local products in the market of that country will be available at cheap rates.
Where did the word tariff come from?
The word tariff comes from the Arabic word Ta’rif, which means information, clarification or information. According to the report of South China Morning Post, the term was first used in a Sicily document of 1338. It was also mentioned in a Venice merchant guide around 1345.
In English, its first documentation is found in Williard’s 1591 military booklet, “The Art of War”, where “tariff” was from knowledge of the number used to organize soldiers. Gradually this word started coming into the discussion. Currently it was associated with global economy. Tariffs have become part of customs duty on imports and exports.
Why do the countries set tariffs?
If you understand tariffs in easy language, it is a kind of economical weapon. Different countries use it to save their products, increase income and create pressure on other countries. However, Trump’s announcement appears to be more like revenge and dictatorship. Why is it necessary to put tariffs for the country, now we understand it.
- primary reason: If someone asks for cheap goods from outside the country and the companies of that country are unable to prepare the goods at that price, then foreign goods are made expensive by laying tariffs so that people buy more and more local products. Due to the glut of foreign goods in the country, the risk of closure of local industries starts increasing. As a result, there is a crisis on jobs. Through tariffs, the government also protects the jobs of the youth of the country along with its industries.
- Second reason: Countries also impose tariffs to reduce trade deficit. If a country imports more goods and sells less which is loss. In this way, imports are reduced by applying tariffs so that the business remains balanced.
- Third reason: A reason for taking such a decision is also a political reason. Which countries consider their enemy or do not like it, but tariffs are placed to create financial pressure on it. In this way an attempt is made to weaken it.
- Fourth reason: Many countries also impose tariffs to fill their treasury. With this, they raise funds on a large scale and run the country. This is also one of the reasons for the tariff.
- Fifth reason: Many countries also take such steps to maintain quality products here, so that their market does not get bad equal from other countries. In such a situation, the tariff acts like a filter.
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