Priyanka Tiwari
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U.S. President Donald Trump is showing no signs of softening his stance on trade. Just hours before his scheduled meeting with Indian Prime Minister Narendra Modi, Trump signed an order to implement reciprocal tariffs. This means the U.S. will impose the same level of import duties on goods from other countries as they impose on American products.
This move is expected to impact both America’s allies and its trade competitors. Experts warn that it could drive up inflation in the U.S. and intensify an already escalating global trade war.
When Will the New Tariffs Take Effect?
The timeline for implementing these new tariffs remains unclear. Under Trump’s order, the U.S. Trade Representative (USTR) and the Commerce Secretary will propose specific import duties for different countries, aiming to bring balance to U.S. trade relations. However, the process could take weeks or even months before coming into effect.
Speaking from the Oval Office after signing the order, Trump stated, “I have decided to impose equal duties to create fair trade. This is the right thing to do, and no country can complain about it.”
India Faces High Tariffs
During his speech, Trump singled out India, calling it one of the countries with the highest tariffs on U.S. goods. He emphasized that the U.S. would set different tariffs for each country, adjusting for taxes, subsidies, and other trade barriers imposed by those nations.
Trump has previously labeled India the "Tariff King", criticizing its high import duties on American goods. He has repeatedly urged India to lower these tariffs or face potential increases in U.S. import duties.
Potential Impact on India-U.S. Trade Relations
Trump’s latest decision could further strain India-U.S. trade relations, which have already seen disagreements over tariffs. The U.S. has been pushing India to lower its import duties, while India maintains certain tariffs to protect its economy and domestic industries.
Additionally, Trump has indicated that India may need to increase its purchases of U.S. defense and energy products as part of any trade negotiations.
Trade War Escalation: China, Canada, and Mexico Also Affected
This move follows Trump’s earlier decision to impose a 10% additional duty on Chinese imports. The U.S. is also preparing to impose tariffs on its two largest trading partners, Canada and Mexico.
A senior White House official acknowledged that the process of implementing these tariffs could take time. However, experts caution that affected countries may retaliate with their own tariffs, potentially escalating the trade war further.
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