US President Donald Trump’s tariff bomb is going to wreak havoc on many countries. Trump has imposed a 25 percent tariff on cars imported into America. This is expected to increase global trade war. This new tariff of Trump is going to be implemented from April 2.
It is believed that America will benefit from about $ 100 billion from this tariff. Trump has claimed to promote domestic manufacturing with this decision, but one truth is that it will give economic pressure on automobile companies. But Trump says that the tariff will open more factories in America.
This 25 percent tariff of Trump will be imposed on imported car and auto parts. Trump hopes that this will increase the revenue of American auto companies, but on the other hand it also threatens to increase inflation because the burden of tariff may finally fall on the customers.
Apart from this, Trump has also announced to install reciperock tariffs on India and many countries from April 2. Addressing the US Parliament this month, Trump said that many countries like India take too much tariffs, now America will do the same. It is believed that a new trade war can start from April 2.
For the past one week, the Indian stock market was towards the rise, but as the date of April 2 is coming closer. The Indian stock market is confused. What will be the effect of Trump’s tariff bomb on the domestic market? Confusion remains about this.
Not only India, American and European stock markets are also seeing a sharp decline for a few days. Both good and bad effects will be seen on its American economy.
The focus of America is on reducing import duty on alcohol, automobile, agriculture and dairy products. Currently it is 150 percent on alcohol, 100 to 165 percent on cars and 120 percent on farming products. If India does not do this, then America will impose heavy tax on its metals, chemicals, jewelery, pharma and automobiles. This can cause a loss of 60 thousand crores to India annually.
US President Trump has announced the implementation of reciperook tariffs on countries around the world from April 2. India is a big supplier of generic medicines to America. In 2022, 40 percent of prescription drugs in the US came from Indian companies, which saved the US $ 219 billion. But the increase in tariffs will increase the prices of Indian medicines. Small Indian pharmaceutical companies, who work on low margin, will not be able to withstand the burden of tariffs. Some may have to be out of the US market, which will reduce India’s exports.
Increasing the prices of medicines in America will increase the burden of medical bill on the patients there, which can cause indirect pressure on India. Trump’s policy will affect many sectors in India, such as chemicals, metal products, and jewelery. According to City Research, India may suffer a loss of $ 7 billion annually.
The US has indicated that India’s agricultural sector can be kept out of tariff war, as it has a bad effect on Indian farmers. This is a relief for India, because agricultural exports are a big sector.