President Donald Trump announced a 26% tariff on Indian imports, as part of broader tariffs imposed on several nations with trade surpluses against the US. Other countries, including Cambodia and Vietnam, will face even steeper tariffs. This initiative aims to protect US manufacturing and punish unfair trade practices, enacted immediately without congressional approval.

On Thursday morning, United States President Donald Trump announced a significant increase in tariffs on imports from various countries that have trade surpluses with the US, including India. India will now face a 26 percent tariff on all its exports to the United States, equating to half of the tariffs these nations impose on American products. This decision adds to the already existing 10 percent baseline tariff on all imports into the US.

During his address at the White House, President Trump referenced the unfair tariff rates imposed on American goods and emphasized his personal relationship with Indian Prime Minister Modi. He remarked, “You’re a friend of mine, but you’re not treating us right,” highlighting the stark disparity where India charges a 52 percent tariff while the US reciprocated with significantly lower rates for decades.

Despite India’s noticeable tariffs, it is not the most affected country under the new regulations. Other nations will incur higher tariffs, including Cambodia at 49 percent and Vietnam at 46 percent. Further countries facing increased tariffs include Sri Lanka (44 percent), Bangladesh (37 percent), Thailand (36 percent), China (34 percent), Taiwan (32 percent), Indonesia (32 percent), Switzerland (31 percent), South Africa (30 percent), and Pakistan (29 percent).

Trump’s tariff announcement coincided with an event titled ‘Make America Wealthy Again,’ where he described the imposition of these tariffs as a “declaration of independence” for American taxpayers, stating they have been exploited for over 50 years. He has fulfilled a significant campaign promise through these reciprocal tariffs without requiring congressional approval, utilizing the powers granted under the 1977 International Emergency Economic Powers Act.

The tariffs are set to be enacted immediately following the announcement, aiming to enhance US manufacturing and punish countries for perceived long-term unfair trade practices, as confirmed by statements from the White House.

In summary, President Trump’s announcement of a 26 percent tariff on Indian imports underscores a significant shift in trade policy aimed at addressing perceived unfairness. While India faces notable tariffs, other nations will endure even harsher penalties. This decisive action, described as a protective measure for American interests, demonstrates the administration’s commitment to revamping trade relations without congressional oversight, effective immediately.

Original Source: www.business-standard.com

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