Trump used reciprocal tariffs on countries around world as weapon!
President trump imposed reciprocal tariff on more than 180 countries including India. After this, there is a stir in the international market. Experts even believe that this tariff announcement by trump will not only increase inflation, but production will decrease, trade war will start and it is even being estimated that the US economy will fall into the grip of recession.
Amidst all this, let us know what the 27 percent tariff that America has imposed on india actually is. Tariff means a kind of tax which is imposed on any imported goods.
The objective of any country to impose tariff can be different. One is that the country imposing tariff wants to keep the price of that particular imported item high, so that it does not affect the domestic producer. That is, it wants to avoid competition and the second objective is to earn revenue by imposing tariff.
It can also be understood in this way that suppose if india imposes a 50 percent tax on any American product, then in response to this, America can also impose tax on the goods imported from india accordingly. That is, by doing this, not only the domestic market is protected in a way, but the trade balance is also maintained. However, trump has used it as a weapon in a way to impose reciprocal tariff on countries around the world, so that pressure can be created on the higher tax that America is imposing on the product.
However, the argument of less developed or other countries is that they are developing countries, so they are levying more tax. But trump has not only tried to put pressure on those countries by imposing tariff, but it is believed that its widespread effects can also be seen in the global economy in the future.
click and follow Indiaherald WhatsApp channel