The term “tariff” has dominated headlines worldwide in recent days, largely due to U.S. President Donald Trump. His tariff policies have sparked volatility in global stock markets, with Indian markets also feeling the impact. On Friday, Trump warned that if the courts rule against his tariff measures, the U.S. could lose a key opportunity to “be great again.” He claimed the American economy is booming, with markets surging and hundreds of billions of dollars being generated.
Trump’s statement ahead of the court decision
Posting on his social media platform, Truth Social, Trump credited his tariff policy for delivering significant economic gains to the U.S. He said stock markets were hitting record highs, with massive daily earnings. However, he cautioned that a ruling against his policy could plunge the U.S. into a crisis similar to the Great Depression of 1929.
Trump insisted that tariffs have had a positive effect on the U.S. economy, warning that if “radical left courts” overturn his measures, the country might never recover.
Impact on India
The U.S. tariffs officially came into effect for India on Thursday, with an extra 25% duty imposed due to India’s oil imports from Russia. The current 25% rate could soon rise to 50%.
S.C. Ralhan, president of the Federation of Indian Export Organisations (FIEO), said the additional tariff would hurt Indian trade, especially since profit margins are already tight.
Tariffs on over 60 countries
The U.S. has extended tariffs to more than 60 nations, including the European Union, Japan, and South Korea, as well as Taiwan, Vietnam, and Bangladesh. Taiwan, Vietnam, and Bangladesh face a 20% tariff, while imports from the EU, Japan, and South Korea are now subject to a 15% duty.
In a more aggressive move, the Trump administration has imposed a 100% tariff on computer chips. The president maintains that these measures will lead to unprecedented economic growth for the United States.