Trump said- retaliatory tariffs will be imposed on all countries; so is there no relief for India?
#News Bureau March 31,2025
US President Donald Trump made a big announcement saying that the retaliatory tariffs proposed by his government will apply to all countries, not just select countries. He made this statement while talking to reporters in Air Force One. Trump said, ‘We will start with all countries … basically all the countries that trade with us.’ This announcement comes ahead of ‘Liberation Day’ on 2 April 2025. Trump has called this day an important day for his tariff plan. This move is expected to increase turmoil and economic uncertainty in global trade.
Retaliatory tariffs mean that the US will impose the same duty on imports from those countries as they impose on American goods. Trump argues that this policy will reduce the US trade deficit and protect American workers and industries. He had earlier described it as part of the ‘America First’ policy in his campaign, claiming that many countries take advantage of America’s open market, while keeping their markets closed to American exports. “They put tariffs on us, we’ll put tariffs on them. It’s a matter of fairness,” Trump said.
However, initially it was believed that this policy would focus only on 10-15 countries with which America has the highest trade imbalance. Trump’s economic advisor Kevin Hassett had recently mentioned the ‘Dirty 15’ countries. But now it is clear from Trump’s latest statement that this policy can affect all trading partners including the 186 member countries of the World Trade Organization (WTO). Earlier in March, Trump had imposed 20% tariff on China, 25% tariff on Canada and Mexico, and 25% tariff on steel and aluminum globally.
This announcement of Trump has created a stir in the global markets. European Union President Ursula von der Leyen called it a threat to economic interests and said that Europe will protect its interests along with negotiations. Canadian Prime Minister Justin Trudeau had already threatened retaliatory tariffs in response to US tariffs. India can also be affected by this policy. Trump often targets India for high tariffs. Bilateral trade between India and the US was worth $190 billion in 2023, with India having a trade surplus.
Economic experts believe Trump’s move could lead to a global trade war. The OECD has warned that tariffs will reduce growth and increase inflation in the US, Canada and Mexico. Prices may rise for US consumers as imported goods such as avocados from Mexico, electronics from China, and oil from Canada will become more expensive. The stock market has already seen a decline.
Trump hinted that retaliatory tariffs could be imposed on April 2, as well as additional duties on automobiles and other sectors.
He said, ‘There will be some additional ones on auto, steel and aluminum.’ This policy is meant to boost American manufacturing, but experts say that the trade deficit is mainly affected by macroeconomic factors, not just tariffs.
In the context of India, Trump had earlier talked about resolving the tariff dispute after meeting with Narendra Modi, but now the announcement of targeting all countries can complicate the situation. India may have to reconsider its export strategy, especially for auto parts, pharmaceuticals and agricultural products.
This move of Trump is towards strengthening his ‘America First’ policy, but it can derail the global trade system. Imposing uniform tariffs on all countries is a complex and risky step. This can lead to retaliation and then inflation and economic recession.
In the context of India, Trump had earlier talked about resolving the tariff dispute after meeting with Narendra Modi, but now the announcement of targeting all countries can complicate the situation. India may have to reconsider its export strategy, especially for auto parts, pharmaceuticals and agricultural products.
This move of Trump is towards strengthening his ‘America First’ policy, but it can derail the global trade system. Imposing uniform tariffs on all countries is a complex and risky step. This can lead to retaliation and then inflation and economic recession.
