Subscribe

Reciprocal tariff EXPLAINED: Does it threaten India even more? What experts say

Reciprocal tariff explained: India faces significant risk from potential US reciprocal tariffs due to a tariff differential that exceeds 10 percentage points. Economists predict tariff hikes for India and Thailand if the US aims to reduce its trade deficit, affecting the defence and energy sectors.

Reciprocal Tariff Impact

President Donald Trump on Thursday ordered his administration to consider imposing reciprocal tariffs on numerous trading partners noting that ‘the United States will no longer tolerate being ripped off’. A White House statement quoting President Trump said that despite the US having an open economy, its trading partners block US exports. “And reciprocal trade will finally correct that imbalance.”

“I’ve decided, for purposes of fairness, that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America,” Trump said in the Oval Office. “In almost all cases, they’re charging us vastly more than we charge them, but those days are over.”

As per the new orders, fresh import taxes would be customised for each country to counter their tariffs on U.S. goods and other trade barriers. According to a White House memo, these include unfair subsidies, strict regulations, value-added taxes, exchange rates, weak intellectual property rules, and other policies that restrict U.S. trade.

Trump further stated that he would enact import taxes on cars, semiconductors, and pharmaceuticals “over and above” the reciprocal tariffs later.
READ More

Releted News