Trump Tariff: Trump said that more than 75 countries have negotiated and have not taken any retaliatory action against the announced tariffs. In such a situation, a very low reciprocal tariff of only 10 percent will be applicable on these countries. The US says that negotiations are going on with India, Japan and South Korea, they are at the forefront in this race.
Trump Tariff: US President Donald Trump on Wednesday announced a 90-day ban on the ‘reciprocal tariff’ announced on April 2 for all countries except China. While Trump has announced an additional tariff of 125% on China, increasing the tariff from the earlier 104%. Now a total tariff of 145% has been imposed on China. Let us know why Donald Trump gave a 90-day exemption to all countries including India and why he announced a 145 percent tariff on China?
Trump said that more than 75 countries have negotiated and have not taken any retaliatory action against the announced tariffs. In such a situation, a very low reciprocal tariff of only 10 percent will be applicable on these countries. The US says that negotiations are going on with India, Japan and South Korea, they are at the forefront in this race.
Why did all countries get a 90-day exemption?
- Big fall in stock market: Donald Trump has been facing pressure from Republicans and business executives for the past few days after a massive sell-off in the US stock market. He insisted on stopping tariffs in view of the possibility of a major trade war. Investors said that the announced tariffs could lead to a slowdown in the global market and raise concerns about a global recession.
- Sharp sell-off in bond market: Another reason behind Trump’s move is the massive sell-off in the US government bond markets. US Treasury Secretary Scott Besant and White House officials expressed concern over the increasing sell-off in the bond markets. Trump said, ‘The bond market is very complicated, I was watching it. The bond market is beautiful right now. But yes, I saw last night that people were getting a little restless.
- Politics of isolating China: The President and his advisers agreed that China’s decision to impose retaliatory tariffs on the US gave them an opportunity to use it as a symbol of friendship to prevent tariff hikes on other countries and isolate China, Axios quoted an official as saying.
What will be India’s strategy?
Essential and non-sensitive products are expected to be included in the initial deal. The government is also considering reducing duties on many items imported from the US. This may lead to some reduction in tariffs by the US. Apart from this, the government is also considering signing a free trade agreement with the European Union and the United Kingdom as soon as possible. To protect domestic markets, India is making strict preparations to prevent dumping by countries like China. This will improve quality by stopping imported goods from China.
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