Trump Announces Reciprocal Tariffs Amidst High Duties by India and China

President Trump announced reciprocal tariffs due to high tariffs from countries like India and China, effective April 2. India is pressured to adjust its tariffs within a month or face equal tariffs on its goods. A multi-ministry committee has been set up in India to study the impact. Trump emphasizes fairness in trade and the need for the US to retaliate against unfair practices.

During a joint session of the US Congress, President Donald Trump expressed his dissatisfaction with the high tariffs imposed by India, China, and other nations, deeming them “very unfair.” He announced that reciprocal tariffs would take effect from April 2, 2021. Consequently, India has less than four weeks to modify its tariffs on American goods, or it will face equivalent tariffs on its exports to the United States.

The Indian government has proactively established a multi-ministry committee to evaluate the potential impacts of these reciprocal tariffs on trade relations between India and the US. This decision emerges in light of a recent meeting between President Trump and Prime Minister Narendra Modi, where both leaders committed to negotiating a substantial, multimodal trade agreement by the end of the year, targeting an ambitious $500 billion bilateral trade figure by 2030 under the initiative “Mission 500.”

In reaction to the US’s planned tariffs, a spokesperson for China’s foreign affairs ministry stated, “If war is what the US wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.” This underscores the heightened tensions in international trade relations amidst Trump’s announcement.

Trump highlighted the inequitable nature of tariff impositions, stating, “India charges us tariffs — 100 percent. The system is not fair to the US, it never was.” He emphasized his administration’s strategy of implementing reciprocal tariffs as a response to the long-standing practices of other nations that impose higher duties on US goods. He declared, “Whatever they tariff us, we will tariff them. Whatever they tax us, we will tax them.”

The forthcoming tariffs will encompass a wide spectrum of imports from essential trading partners, including Canada, Mexico, China, the European Union, and India. Trump’s initiatives align with his ongoing perspective that current global trade rules disproportionately disadvantage the United States. While previously considered, such measures were not fully executed during his first term, this endeavor signals a decisive shift in US trade policy that incorporates both tariff and non-tariff barriers to assess trade fairness.

In summary, President Trump’s announcement of reciprocal tariffs highlights a significant shift in US trade policy, compelling countries like India to reassess their tariffs on American goods. The establishment of a multi-ministry committee in India reflects the urgency of the situation, while China’s assertive stance indicates the broader implications of trade tensions. Trump’s rhetoric reinforces his administration’s commitment to a more equitable trading environment, as he seeks to level the playing field by imposing equal tariffs in response to those levied by other nations.

Original Source: www.tribuneindia.com