The Trump administration has announced the implementation of 'reciprocal tariffs' from April 2, targeting key trading partners such as India, the European Union, South Korea, and Brazil. These tariffs aim to match the tax rates imposed by these countries on American goods.
President Donald Trump, emphasising fairness in trade, stated, "Whatever countries charge the United States, we will charge them the exact same tax. In most cases, they charge us more, but those days are over."
While global industries fear the impacts, India's NITI Aayog believes the tariffs will have a missed effect. Former Vice Chairman Rajiv Kumar explained, "Indian exporters will face disadvantages, but higher tariffs on China, Mexico, and Canada could offer opportunities."
The US has already imposed a 25 per cent tariff on steel, aluminum, and auto imports. White House Press Secretary Karoline Leavitt defended the move, saying, " These tariffs will protect national security and American workers."
Experts warn the police may backfire, raising export prices and fueling inflation in the US. Economist Aakash Jindal remarked, "A tariff war could push the global economy into a showdown or even recession."
This decision comes ahead of trade negotiations between the US and India, with both nations aiming to double bilateral trade to $500 billion by 2030. (With PTI Inputs)
