Trump imposed 25% additional tariff on India, now total fees are 50%, new rules will be implemented after 21 days

🇺🇸 Trump imposed 25% additional tariff on India, now total fees are 50%, new rules will be implemented after 21 days

Former US President Donald Trump has announced a 25% additional tariff on India. With this, the total fee has now increased to 50%, which will be effective in 21 days. Know what will be the impact on Indo-US trade.

Tension again in America-India business relationships, Trump's big announcement

Former US President and Republican Party chief contender Donald Trump has once again taken a tough stand on India in the 2024 elections. He has announced that an additional 25% tariff will be imposed on Indian products, which will now make the total import duty to 50%. This new fee will be implemented within 21 days.

Trump's decision has come at a time when the electoral atmosphere in America is hot and a strategy to promote domestic companies is being adopted. He said in clear terms that American companies are suffering from cheap products from abroad and they will be given a chance to equal tax on countries like India.

Why is Trump targeting India?

Trump has always been in favor of the 'America First' policy. He also extended tariffs against countries like India, China, Europe in his first term (2016-2020). Now he has adopted the same strategy again. He believes that India exports a large scale products in the US but in return the US has to face trade deficit.

Trump also alleged in his speech that India has competed with American technology and brands with cheap options, which had affected American employment. Therefore, it is now necessary to impose 50% fee on goods coming from India.

What will be the effect on India?

This new tariff will affect the sectors of India who export America on a large scale:

Textile and Garments: They already had a 25% fee, now it will be 50%.
Auto parts and machine equipment: American companies will now hesitate to buy Indian parts.
Pharmaceuticals and Ayurvedic products: These will have an impact, which may shock India's Made-in-India branding.
IT service and software license: Even though they are not directly affected by tariffs, stress in business relationships can slow down the growth of these areas.

Will the Indian government answer?

Now the biggest question is whether India will take any action in response to this step? The Ministry of External Affairs and the Ministry of Commerce have not yet made any official statement on it. But experts believe that India can also increase tariffs on US products or complain to the World Trade Organization (WTO).

For India, it is not only economic but also a strategic issue. Business relations with the US are not only limited to trade but both countries are also partners in the fields of defense, technology, investment and education.

Inner debate on Trump's policy in America

Donald Trump's decision is also being criticized in the US. Many American industry organizations believe that this will increase the prices of goods and domestic consumers will have to spend more. At the same time, some lobbies believe that this will provide relief to American industries.

Trump supporters consider it to be patriotic and domestic production, while opponents are calling it against global trade rules.

Conclusion: Business or politics?

Trump's move is part of the electoral strategy or it is really an attempt to rescue America from the business deficit - it is too early to say. But it is certain that there will be increasing tension in business relations between Indo-US. India will now have to balance both diplomatic and strategic levels to minimize commercial damage.

📢 What do you believe? Should India retaliate or adopt the path of dialogue? Explain in the comment.