On April 2, Trump will announce new reciprocal tariffs affecting all US trade partners, with immediate impacts targeting high tariffs on US goods. Countries like India are preparing for various scenarios amid economic uncertainty. Global allies, including Canada and the EU, are readying responses to the tariff threats, stressing the need for negotiation.
On April 2, President Trump is set to announce new “reciprocal tariffs” impacting all US trade partners. This significant move aims to address trade practices perceived as unfair to the US. White House spokeswoman, Karoline Leavitt, indicated the tariffs would immediately target countries imposing high duties on US goods, beginning with a 25% auto import tariff effective April 3.
Ahead of the announcement, Trump met with advisers to refine the details, emphasizing it as a pivotal step towards achieving fair trade agreements. India’s response to this developing situation remains cautious, focusing on bilateral trade negotiations while navigating potential economic impacts from the tariffs.
Indian officials are preparing for various scenarios regarding the tariffs’ implications on trade, remaining optimistic about ongoing discussions. US Treasury Secretary Scott Bessent conveyed that the tariff announcement would set a maximum level, which could decrease under certain conditions.
Reports indicate thatTrump’s administration may propose tariffs as high as 20% on goods from all countries, with projected revenues potentially reaching $6 trillion allocated as rebates to affected sectors. Furthermore, discussions of a universal tariff on specific nations are under consideration.
In response, Canada and the EU have voiced their intentions to counter Trump’s tariff threats. Canada plans to enact its own tariffs, while the EU emphasizes a preference for negotiated solutions, while preparing to defend its economic interests.
In summary, President Trump’s impending announcement on reciprocal tariffs signifies a critical shift in US trade policy aimed at addressing perceived imbalances. Countries like India are poised to respond, strategizing on potential impacts and negotiation tactics. The global trade landscape remains uncertain as allies express readiness to challenge these measures while seeking fair resolutions. The evolving situation necessitates close monitoring of interactions between the US and its trading partners as the economic implications unfold.
Original Source: www.hindustantimes.com
