Donald trump is going to change the fate of America!
US President donald trump has said something that is surprising the whole world. On one hand, trump, who talked about imposing heavy tariffs on other countries, is now talking about abolishing the income tax system in his country. donald trump said this during the 'Republican Issues Conference' held in florida on 27 january 2025. trump believes that this step will increase the disposable income of American citizens, which will make them more economically prosperous.
What did donald trump say?
During the Republican Issues Conference, trump said that there was no income tax in America before 1913 and at that time the country had achieved prosperity through the tariff system. He gave an example and said that between 1870 and 1913, America experienced its richest days, when a tariff-based economy was in place. He believes that now the time has come for America to return to the system that made it strong.
Emphasis on foreign tariffs
trump also said in his proposal that America should strengthen its economic position by increasing tariffs on foreign products. He made it clear that the goal of his government is not to enrich foreign nations by taxing its citizens, but on the contrary, to enrich American citizens by imposing duties on foreign goods.
What will be its effect?
While on one hand Trump's proposal is being appreciated among the people of America, many economists have warned that this plan will not be as simple as it seems. They say that tariff and tax cut plans can increase inflation and interest rates can remain high. Apart from this, if the tariff on foreign goods increases, it can increase the inflation rate, which will ultimately put pressure on American consumers.
If Trump's proposal is implemented, its impact will not be limited to America only. Other countries including india may also have to face new challenges due to this. indian exporters may suffer losses due to high tariffs, especially in sectors like IT services, garments and pharmaceuticals, it can have serious consequences. Apart from this, if india retaliates by increasing tariffs on American products, it can increase inflation in the local market.
Donald trump is going to change the fate of America!
click and follow Indiaherald WhatsApp channel