America flouted rules of global trade, 10% baseline tariff!
US President donald trump has imposed a 10 percent baseline tariff on all countries of the world, which came into effect from saturday midnight. Due to this, US custom officials started collecting it from april 5. Along with this, even higher tariffs have been imposed on 57 countries like India, China, Vietnam, which will come into effect from april 9.
Collection of 10 percent baseline tariff started
Trump's 10 percent baseline tariff came into effect at US ports, airports and custom warehouses from 12 am ET (09:31 am indian time) yesterday. With this, trump completely rejected the system of tariff rates decided by mutual consent after the Second World War. According to a business Standard report, Kelly Ann Shaw, a trade lawyer at Hogan Lovells and a former white house trade adviser during Trump's first term, said, "This is the biggest trade action in our lifetime."
Changes in tariffs are also expected
Shaw said at an event at the Brookings Institution on thursday that she hopes tariffs will change over time as many countries are preparing to negotiate with the US to reduce tariff rates. She said, "This is a very big and important change in the way we do business with every country on earth."
Trump's reciprocal tariffs caused a stir
As soon as trump announced the reciprocal tariffs on Wednesday, april 2, stock markets around the world were in a state of panic. As a result, the total market valuation of S&P 500 companies fell by $5 trillion on Friday, the biggest drop in two days so far. Here, the prices of crude oil and other commodities also fell. Investors were also seen running towards gold and bonds for safe investment.
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