Trump Drops Bombshell on Tariffs, Targets India, China, EU & More

Washington (The Uttam Hindu): President Donald Trump shook things up on Wednesday with a bold announcement of reciprocal tariffs, aiming to boost U.S. manufacturing. These tariffs which vary by country are meant to level the playing field but they’ve raised concerns of escalating prices and the risk of a global trade war.

Trump slapped a 26% “reciprocal tariff” on India 34% on China 20% on the European Union and 24% on Japan citing unfair trade practices. Speaking at the “Make America Wealthy Again” event Trump called India’s 52% duty on American goods “unfair,” while the U.S. charges India almost nothing. He also called Prime Minister Modi a “great friend” but pointed out that India wasn’t treating the U.S. right.

Trump didn’t hold back, accusing past U.S. leaders of allowing a trade imbalance that endangered national security. “Our industrial base has been destroyed,” he said adding, “I don’t blame these other countries... I blame our past leaders.” The U.S. will also impose a 25% tariff on all foreign-made automobiles starting at midnight.

While some countries face higher tariffs like China (34%) and Bangladesh (37%) India’s tariff is lower than those of its main competitors in the U.S. market. China, Vietnam and Bangladesh key rivals for India now face steeper charges potentially making Indian goods more competitive.

However the tariffs will not have an immediate impact on India’s exports as Indian goods are still comparatively cheaper than goods from rivals like China and Vietnam. But countries like Brazil and Britain face even lower duties than India though they don’t compete with India in the same goods market.

Trump’s message was clear: after 50 years of “cheating” American taxpayers the era of exploitation is over and the U.S. is ready to strike back.