US President Donald Trump on Thursday announced to impose 26% tit for tat tariff (reciprocal tariff) on India. Trump said- India is very strict. Modi is my good friend, but is not behaving properly with us.
Trump said- India imposes up to 52% tariff on America, so America will impose 26% tariff on India. We will charge about half the tariff that other countries are charging from us. Therefore, the tariffs will not be completely reciprocal. I could have done this, but it would have been difficult for many countries. We did not want to do this.
Apart from India, America will impose 34% tariff on China, 20% on European Union, 25% on South Korea, 24% on Japan, 46% on Vietnam and 32% on Taiwan. The US has imposed tariffs on about 60 countries equal to half the rate of tariffs imposed by them on American products.
Trump said – 10% baseline tariff will be imposed on all goods coming to America. According to White House officials, the baseline tariff will be effective from 12:01 am on April 5. While reciprocal tariffs will be applicable from 12:01 am on April 9.
6 big points of Trump’s address
- 25% tariff in auto sector: America will impose 25% tariff on foreign-made automobiles. Till now America used to charge only 2.4% tariff on motorcycles from other countries. Whereas India is charging 60%, Vietnam 70% and other countries are charging even more. They looted America for 50 years, but it will end today.
- America will become the richest country: America will be richer than any country in the world. Today we are standing up for the American worker. Finally we are implementing America First. We can be really rich. We can be so rich that it seems unbelievable, but now we are getting smart.
- Make products in America to avoid tariffs: America will now respond in equal measure to tariffs. Countries that want access to the American market will have to pay a price for it. If any company wants exemption from tariffs, it will have to make its product in America. Tariffs will lead to the development of America.
- Jobs and factories will return to America: Many countries made themselves rich by taking advantage of the American market. But they tightened their market for American goods. Now America will also think about its own benefit. Now jobs and factories will return to America.
- Canada’s dairy tariff is unfair: Dairy tariff Canada’s dairy tariff is not fair to our farmers. America gives subsidies to countries like Canada and Mexico to help them maintain their industries. We also stand up for our great farmers and ranchers, who are treated cruelly by countries around the world.
- Economic Freedom Day for America: Today is the day of economic freedom for America. We have to make America great again. We are announcing reciprocal tariff, that is, we will do the same to the countries which are imposing tariff on us.
India created a control room
The Indian government created a control room to monitor Trump’s announcement of reciprocal tariff. Officials of the Ministry of Commerce and Industry were present in the control room. All the officials evaluated the possible effects of US tariff on India’s trade.
What is tariff
Tariff is a kind of border fee or tax, which any country imposes on goods coming from abroad. This tax is imposed on the importing company. Countries control trade among themselves by increasing or decreasing it.
Trump had said – 100% tariff will be imposed on India from April 2
Trump had said in the joint session of the US Parliament – India charges more than 100% tariff from us, we are also going to do the same from next month. He announced that under his administration, if a company does not make its product in America, it will have to pay tariffs. In some cases, this tariff will be very large. He said that other countries impose heavy taxes and tariffs on America, while America imposes very little on them. This is very unjust. Other countries have been imposing tariffs on us for decades, now it is our turn.
Trump said that ‘reciprocal tariff’ will be implemented in America from April 2. That is, whatever tariff they impose on us, we will also impose the same on them. Whatever tax they impose on us, we will also impose the same tax on them. Trump said laughingly, ‘I wanted to implement it on April 1, but then people would have considered it ‘April Fool’.’
Trump had said that India charges very high tariffs from us
After the announcement of the tariff, on March 7, Trump had said that India charges very high tariffs from us. You cannot sell anything in India. However, India now wants to reduce its tariffs a lot because we are exposing their deeds. He said- Our country has been looted by everyone, but now it has stopped. I had stopped it in my first term. Now we are going to stop it completely because it is very wrong. America has been looted by almost every country in the world from economic, financial and trade point of view.
US President’s big claim, India agrees to reduce tariffs
Meanwhile, Trump claimed that India has decided to reduce tariffs on American products to a great extent. He said that many countries will reduce their tariffs because they know they have been wrong with America. The European Union has already reduced its tariffs by 2.5%. I recently came to know that India is also going to reduce its tariffs to a great extent. At the same time, China, Japan and South Korea have united against this decision of Trump. This claim has been made in a post made by a social media account associated with Chinese state media CCTC.
China, Japan, South Korea can make a free trade agreement
China, Japan and South Korea held economic discussions on Sunday after five years. During this discussion, it was decided that the three Asian countries will promote mutual trade amid the announcement of additional tariffs by Trump. Apart from this, the trade ministers of the three countries have also expressed the possibility of a free trade agreement among themselves.
India has already rejected such claims of America
About three weeks ago, Trump had made a similar claim about India. Then the Indian government had rejected this claim. Indian Commerce Secretary Sunil Barthwal had told the parliamentary panel that India has not given any commitment to reduce tariffs with America. While giving information to the Parliamentary Committee on Foreign Affairs, Sunil Barthwal had clarified that the talks between India and America are still going on and no trade agreement has been finalized yet. Barthwal said that the claims of the US President and media reports cannot be trusted. India’s interests will be taken care of in any trade talks.
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