US President Donald Trump signed an executive order on Wednesday evening to impose an additional 25 % tariff on India. The US said that the decision was taken in response to India's continuous oil purchases from Russia. With this, the United States has announced a total of 50% tariffs on India.
Just 24 hours ago, Donald Trump threatened to raise tariffs on India. Donald Trump said in an interview to CNBC that if India continues to buy fuel from Russia, the tariff will be further increased.
Donald Trump hinted that they could increase the tariff on pharma imports by 250 percent, which could be the largest tariff proposed by them ever. They will start with small tariffs, but plan to increase it slowly within 18 months. First it will be 150 percent and finally it will be taken up to 250 percent.
US President Donald Trump's new tariff policy has caused economic turmoil all over the world. From developed countries like India, Canada, UK, Japan to developing countries like Laos and Algeria, everyone is facing the impact of this tariff. The direct impact of the heavy tariffs implemented from August 7 is visible on American markets and global trade.
Experts believe that Trump's move can hurt not only other people but also America. According to Barry Appleton, co-director of the Center for International Law at New York Law School, “There may be a winner in this policy. Most countries will have to suffer losses and America will not be untouchable.”
Deals with direct threats no longer rules
After taking over as president, Trump has almost broken the old global economic system. Now the trade policy in the United States is being determined by the president's will rather than the rules. Trump is pushing over countries that do not comply with their terms. Those who adhere to Trump's terms are being given concessions.
According to Alan Wolf, former US Trade Officer and Deputy Director General of the World Trade Organization (WTO), Trump played a gamble that he could threaten countries and bring it to the negotiation table and he has succeeded. The process began on April 2, which is being called Trump's exemption day. On the same day, he announced the imposition of up to 50 % of reciprocal tariffs on the trade deficit countries, while announcing a 10 % baseline tax on the remaining countries.
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