Donald Trump has moved into battle with the rest of the world, not with tanks, guns, ships or fighter jets, but with tariffs. “Liberation Day”, as he says, is here. But it is not about achieving freedom in any way. Rather, it is an anti -retardation step that can destroy the global market.
He has announced the tariff, and will soon sign the President’s order. They will come under the influence starting from midnight (eastern time).
Many world leaders, heads of states, economists and financial experts have assured that “a business war will benefit someone”. Like all wars, it is people and economy that will suffer the most. But President Trump has been closed to test it. “Let’s see what happens,” Mr. Trump has said.
The White House has announced, “mutual tariffs will be effective immediately.”
Speaking on the announcement of the “Liberation Day” tariff from the White House Rose Garden, President Trump said, “For a very long time, other countries have looted and looted us by taking advantage of our policies. But not now. No. 2 April. 2 April will be known as Mukti Day on 2nd April – when we do our industries again.
He said, “By doing this we will recover our jobs, we will recover our industry, we will recover businesses on our small and medium scale … and we will make Amrika rich again. Jobs will now come around in America,” he said.
He said that “America will be kind to other countries and will charge only half the charge of whatever they charge.” He announced that a comparative chart of tariff – US vs other countries.
Announced after 4 pm local time (8PM GMT – 1:30 AM IST)
Donald Trump’s ‘business war’, perhaps a more accurate word to describe American law, will definitely attract global vengeance. Here are the areas that will be the most affected by American import duties:
1) Steel and Aluminum – Donald Trump has increased tariffs on 25 percent on all steel and aluminum imports, and has increased the duties of hundreds of downstream products. America is the world’s largest aluminum importer and the second largest steel importer. More than half of those versions come from Canada, Mexico and Brazil.
2) Automobiles and Motorbikes – Donald Trump has announced 25 percent ‘global’ tariff on all imported cars and light trucks. Import duty, he said, import of finished vehicles will be imposed on and above previous duties. “On the motorbike, Vitanum and India charge as 70 and 100 percent respectively, and now we will do the same.”
3) Pharmaceuticals – Donald Trump has decided that the US pharmaceutical will tariff raw materials, supply and medicines. This is a major change that is an American trade policy because pharmaceuticals are usually exempted from tariffs in the US.
4) Alcohol and Alcobev Industries – Donald Trump announced 200 percent tariff on all wine, conyac, spirit and other alcohol imports from Europe. It is in response to the European Union’s plan to put tariffs on American whiskey and other products. Whether or not it has been implemented in today’s tariff structure is yet to be seen.
5) semiconductor – President Trump said that the tariff on semiconductor chips would start with “25 percent, or higher”. This, he said, there will be great increase during one year.
6) Agriculture – The Trump administration has said that it will detect tariffs on agriculture and dairy yield on nations that tariff American agricultural products. Countries like India, which charge 100 percent import duty on agricultural products, Japan, charge 700 percent on imported rice, China charges 65 percent, and the European Union, which charge a 50 percent duty on dairy products from the US, should cross for mutual tariffs, the White House said.
7) meat products – On beef imports, especially from Australia, Donald Trump said, “They have banned beef imports from America to protect their farmers. I can understand this, but why we should continue to import beef from them. We also have farmers. So, effective midnight, we abolish all beef imports from Australia.”
China has created a special effect of additional 20 percent tariff on all Chinese goods above and above industry-specific mutual tariffs.
The new duties, which are important, and will influence a wide range of countries, including close associates of America, have decades -old trade arrangements – some of which have been since 1947.
Donald Trump often called the word ‘tariff’ as the “most beautiful word” in the dictionary and his personal “favorite word”, as it “will definitely make America great again”, but economists disagree. Thari has warned that Trump’s tariffs will slow down the global economy, even increasing the risk of recession worldwide will cause a significant decline in demand and a lot of chains and logistics will be seriously challenged.
Economists further warned that the tariff of Donald Trump on US imports will increase the cost of life for the average American family to thousands of dollars, which would lead to widespread inflation and eventually reduce the average American purchasing power. According to an Economic Survey by the US ‘Yale University, currently only 20 percent of the tariffs at the top of those will spend at least $ 3,400 to the average American house.
According to the Reuters of the news agency, American businesses are also feeling heat, as US stocks have erased around $ 5 trillion price as Donald Trump has become President for the second time.
(Input from Reuters)