President Trump has announced plans for reciprocal tariffs against countries with high tariffs on U.S. goods, such as India, South Korea, and China, starting April 2. He noted ongoing negotiations with India for a multi-sector bilateral trade agreement, while recent tariffs on Mexico and Canada have taken effect. These actions raise concerns about trade wars potentially affecting U.S. economic stability.

In a recent nationally televised address to Congress, President Donald Trump declared a shift in trade strategy, emphasizing the implementation of “reciprocal tariffs” against nations that have maintained high tariffs on American products for years. He specifically cited countries such as India, South Korea, and China as having levied steep duties against U.S. goods, criticizing their trade practices. Effective April 2, additional non-tariff actions are anticipated to address longstanding trade imbalances.

Despite the potential for higher U.S. tariffs, immediate repercussions for India appear limited, as both nations are engaged in constructive dialogue to reconcile trade differences. Commerce Minister Piyush Goyal traveled to the U.S. to negotiate a multi-sector bilateral trade agreement that aims to facilitate trade across several industries, part of an overarching $500 billion trade plan established during Prime Minister Narendra Modi’s meeting with President Trump on February 13.

The negotiations are expected to lead to the early completion of the first phase of a mutually beneficial Bilateral Trade Agreement by fall 2025, involving reciprocal tariff concessions in various sectors. On the same day of Trump’s address, new tariffs of 25% on imports from Mexico and Canada also took effect, alongside additional duties on Chinese products. These actions have heightened tensions, possibly resulting in trade wars that could hinder economic growth and exacerbate inflation in the U.S.

Trump has linked his tariffs to concerns about the flow of fentanyl into the United States, which he claims has been inadequately addressed by his primary trading partners. In response, China’s foreign affairs ministry has expressed readiness to engage in whatever form of conflict the U.S. may initiate, stating they are prepared to “fight until the end” in this burgeoning trade war.

President Trump’s announcement regarding reciprocal tariffs marks a significant pivot in U.S. trade policy aimed at countering longstanding tariff practices from countries like China, India, and South Korea. As negotiations with India continue, the broader implications of these tariffs could reshape international trade relations and impact U.S. economic stability amidst prevailing inflationary pressures.

Original Source: www.hindustantimes.com

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