Trump Critiques India’s Tariff System; Reciprocal Tariffs Effective April 2
U.S. President Donald Trump has announced reciprocal tariffs against India and other nations starting April 2, 2025, citing unfair tax practices. Meanwhile, China set its GDP growth target at approximately 5% for 2025, indicating a need for stimulus amidst U.S.-China trade tensions. In market updates, the Indian stock market saw gains, while oil prices fell due to increased output from OPEC+. Coforge plans a stock split and Adani Wilmar is set to acquire GD Foods.
In recent tariff news, U.S. President Donald Trump has criticized the “unfair systems” employed by India, the European Union, China, and other countries, asserting that these nations have long taken advantage of the U.S. through tariffs. Trump insists that the time has come for reciprocal tariffs, indicating that action will commence on April 2, 2025. He specifically pointed out that India imposes a 100% tariff on automobiles, stating, “the system is not fair to the U.S., it never was.”
During this period, China announced an economic growth target of approximately 5% for 2025, amid ongoing trade tensions with the United States. This target aligns with market expectations, as officials prepare for potential stimulus measures to counterbalance the effects of U.S. tariffs. China also set its fiscal deficit target to approximately 4% of GDP, a significant level not observed in over 30 years.
In domestic markets, the Sensex experienced a notable increase, surging over 500 points to reach a level of 73,497, while the Nifty climbed more than 2% to settle at 38,096. These movements in stock prices reflect positive investor sentiment, despite global tariff uncertainties. Additionally, oil prices continued their decline due to OPEC+ plans to increase output and the impact of U.S. tariffs on multiple countries.
On corporate news, Coforge announced a stock split, changing each Rs 10 share into five shares of Rs 2, pending shareholder approval, contributing to a price increase of over six percent in early trading. Furthermore, Adani Wilmar has signed an agreement to acquire GD Foods, known for its popular FMCG brand, “Tops,” with the acquisition structured in tranches over a period of three years.
In summary, President Trump’s declaration of reciprocal tariffs against countries like India marks a significant development in U.S. trade policy, emphasizing a shift towards addressing perceived imbalances. Concurrently, China’s GDP growth target and domestic market responses highlight the ongoing complexities of international trade relations amid evolving economic strategies. Overall, the landscape of global trade continues to shift as nations react to tariffs and economic challenges.
Original Source: www.moneycontrol.com
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