US President Donald Trump signed an executive memorandum that would impose tariffs on Chinese imports worth upto USD 60 billion. Is this the start of a global trade war? Is India prepared to weather this storm?
What was being speculated for days finally turned into reality on Thursday — US President Donald Trump signed an executive memorandum that would impose tariffs on Chinese imports worth upto USD 60 billion. Is this the start of a global trade war? Is India prepared to weather this storm?
The US claims that the tariffs have been imposed in retaliation to “unfairly acquired US intellectual property by China.”
The tariffs have been imposed following an investigation of Chinese policies ordered by the US President in August last year. Trump claimed the tariffs would, ”make US a much stronger, richer nation.”
According to US government officials, the United States trade representative will publish a list of targeted products in the next 15 days.
Trump’s latest move has spooked markets across the world, who are viewing it as a trigger that could escalate into an all-out trade war between the two of the world’s largest economies. Wilbur Ross, USA’s Commerce Secretary however told CNBC that he doesn’t think that there will be a trade war with China resulting from President Donald Trump’s latest tariffs.
Meanwhile China has said that it will retaliate against the tariffs imposed by the United States. It has urged the US to pull back the tariffs saying that it does not want to get into a trade war. However Beijing has clarified that it is not afraid of a trade war and has identified more than 100 American products that that it will impose duties on if the US goes ahead with tariffs on Chinese steel and aluminium.
India’s Commerce Minister, Suresh Prabhu said, India remains in a wait and watch mode as the trade war escalates. Speaking to the media, Prabhu said that India will “respond appropriately” if it faces unilateral action by any country.
Meanwhile, former RBI Governor Raghuram Rajan has warned that this crisis could derail global economic recovery.
Shereen Bhan caught up with Jim O’Neill Former Chairman Goldman Sachs Asset Mgmt AMC, Jayant Dasgupta Fmr Envoy of India to WTO and Einar Tangen Commentator Politics & Economics to find whether this will escalate into a full blown trade war or are we in the middle of one already? And is India prepared to tackle if such situation arises?
