Trump announces new tariffs, India and other nations brace for impact

President Donald Trump is set to unveil a series of reciprocal tariffs targeting India, Japan, and other nations imposing high duties on American goods. The announcement, scheduled for 4 PM Eastern Time (1:30 AM IST), will take place at a White House event titled ‘Make America Wealthy Again.’ Trump has declared April 2 as ‘Liberation Day,’ signaling his commitment to leveling the playing field for U.S. businesses.

Key Highlights:

The tariffs on imported goods take effect immediately, while automobile-related duties will be implemented starting April 3.

White House Press Secretary Karoline Leavitt criticized India’s 100% tariffs on American agricultural goods, citing unfair trade practices across multiple nations, including the EU’s 50% tariff on U.S. dairy and Japan’s 700% duty on American rice.

The U.S. currently has trade agreements with over 20 countries, making these new tariffs a significant shift in global trade relations.

Market Reactions

Ahead of the announcement, Indian stock markets ended the day in positive territory. The BSE Sensex closed 592.93 points higher at 76,617.44, while the Nifty 50 gained 166.65 points to end at 23,332.35. Analysts attribute this to market confidence in handling the expected policy changes.

Global Response and Economic Impact

The European Union has previously retaliated against Trump’s tariffs on steel and aluminum by imposing duties on key U.S. exports, such as Harley-Davidson motorcycles and bourbon. Experts believe new tariffs could escalate trade tensions, impacting not just goods but also the U.S.’s service export surplus in Europe.

Trump’s strategy aligns with his broader economic agenda of reducing foreign reliance and boosting domestic production. However, economic experts warn of potential repercussions, including market instability and strained international relations.

What’s Next?

With global leaders closely monitoring the situation, potential countermeasures from affected nations could further complicate the trade landscape. The world now waits to see whether Trump's latest trade move will boost American manufacturing or trigger a broader economic standoff.