Donald Trump tariff is the just a drama. He only needs to show that I am is back. The Russian-Ukrian war is also part of this.
Table of Contents
1. Introduction
Donald Trump tariffs aimed to protect U.S. industries, reduce trade deficits, and counter what he saw as unfair trade practices, particularly by China. The Tariff policies affect the multiple sectors like, steel, aluminium, technology, and agriculture, causing global trade tensions.
2. Background: Trump’s Tariff Strategy
Trump believed that high tariffs would encourage domestic manufacturing and reduce U.S. reliance on foreign imports. His administration also imposed on like Canada, Mexico, and the European Union, arguing that they were taking advantage of the U.S. in trade deals.
3. Major Tariff Decisions Under Trump.
- Steel & Aluminium Tariffs (2018): The U.S. slapped 25% tariffs on steel and 10% on aluminium, impacting imports from multiple countries, including India.
- Tariffs on EU, Canada & Mexico: U.S. imposed duties on auto parts, agricultural products, and metals. This led to retaliatory from these countries on American goods.
- Tariffs on India: Trump removed the India from the Generalized System of Preferences (GSP), is a trade benefit that allowed duty-free exports of Indian goods worth $6 billion. This impacted Indian exports like pharmaceuticals, textiles, and jewellery.
4. Economic & Market Impact
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- On the U.S. Economy: While some U.S. industries (like steel) benefited, others (like auto and agriculture) suffered due to increased production costs.
- Stock Market Reactions: The uncertainty it doesn’t cause any impact on the stock market and also NIFTY and SENSEX indices. It is only to create a to create confusion in the market.
- On Global Trade & Markets: market volatility, affecting stock prices, global supply chains, and business investments were triggered by this.
5. Political & Global Response
- China: Imposed counter on U.S. agricultural and tech products.
- EU, Canada & Mexico: Retaliated with this on American goods, leading to renegotiations (USMCA replaced NAFTA).
- WTO Disputes: Several countries filed complaints against the U.S. at the World Trade Organization (WTO).
6. Tariff Impact on India & Indian Stock Market
- Export Challenges: Indian companies, especially in pharmaceuticals, textiles, and auto parts, faced losses due to higher of this.
- Stock Market Reactions: The uncertainty it doesn’t cause any impact on the stock market and also NIFTY and SENSEX indices. It is only to create a to create confusion in the market.
- Government Response: India increased duties on U.S. goods while also strengthening trade partnerships with other nations.
- Profit and loss on the Tariff:
Indian Exports to the United States
In 2023, India’s exports to the U.S. totalled approximately $75.81 billion.
The major export categories included:
- Machines: $18.6 billion
- Chemical Products: $16.4 billion
- Precious Metals: $12.2 billion
U.S. Exports to India
In 2023, U.S. goods exports to India were valued at $41.8 billion, marking a 3.4% increase from the previous year.
Key export sectors included:
- Mineral Products: $13.7 billion
- Machines: $7.05 billion
- Chemical Products: $4.38 billion
By this, it says that the ultimate losses are to America because American import is half of the export to Indian to America, so the Indian export is higher than USA. Then the ultimate loss is to USA.
7. Conclusion
- By this, it says that the ultimate losses are to America because American import is half of the export to Indian to America, so the Indian export is higher than USA. Then the ultimate loss is to USA. The uncertainty it doesn’t cause any impact on the stock market and also NIFTY and SENSEX indices. It is only to create a to create confusion in the market.
- Trump’s policies reshaped global trade, triggering both economic gains and losses. While they aimed to protect American industries, they also led to retaliatory, affecting global markets. The long-term impact of these tariffs is still unfolding as the Biden administration navigates its trade policies.
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