Trade War: US President The trade war has started once again as soon as Donald Trump arrived. Canada and Mexico have announced a counter -duty in response to the recent fees on their exports by the US. On Saturday, US President Donald Trump announced a 25% duty on imports from Canada and Mexico citing illegal immigration and drug smuggling concerns. In response, Canadian Prime Minister Justin Trudeau has said that Canada will also levy a 25% fee on American goods. The same Mexican President Claudia Shinbam also announced that he has ordered his economy minister to implement new tariffs and non-tariff policies against the widespread charges leveled by the United States on Mexican exports.
10 percent tariff imposed on China
The Trump administration has imposed a 10 per cent tariff on goods imported from China. This can affect business relations with these countries. After imposing the tariff, Trump said, “Today I have implemented 25% tariffs (10% on Canadian energy) on imports from Mexico and Canada and 10% additional tariffs on China.”
Threat to increase tariff on India
Trump also named India including China as soon as he took power. He also threatened to increase the tariff on India. However, he has not yet decided about India, but there is a possibility that he can do this anytime. Experts say India commits fish with pharmaceuticals, gems and jewelery to the US, which may be an easy target for Donald Trump. Currently, India’s trade surplus with the US is around $ 33.8 billion. In 2021, there has been a steady increase in India’s bilateral trade surplus with the US. However, this is not much.
India has already indicated to improve relations with America. India has also started reducing tariffs on American goods. In such a situation, Trump may not take any decision soon. They will assess the situation and then take a decision. Experts believe that these tariffs for Trump have brought both political and economic risks together. Some items can be expensive due to tariffs. This decision can directly affect power, auto, wood and agricultural sector.
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