Trump Imposes 26% Tariff on India: Impact on Global Trade

• Trump's Tariff Announcement: On Liberation Day, President Donald Trump announced a new set of tariffs as part of his "Fair and Reciprocal Plan," aimed at boosting U.S. manufacturing and punishing countries for trade imbalances. Under this plan, the U.S. will impose tariffs equal to those that other countries impose on U.S. goods. India will face a 26% tariff on its exports to the U.S.
• Other Countries and Their Tariffs: China, which has been a target of U.S. trade actions for a long time, will face a heavy 34% tariff. The European Union will be charged a 20% tariff, while Vietnam, one of the prominent global trade players, will face the highest tariff of 46% on imports into the U.S.
• Tariffs on Other Affected Countries: Switzerland will also be charged a 34% tariff. South Korea faces a 25% tariff, Japan 24%, and Taiwan 32%. The United Kingdom will face a 10% tariff, while Cambodia will bear the highest tariff of 49%, one of the highest rates under the new policy.
• Reciprocal Tariffs Explained: Reciprocal tariffs are a trade policy mechanism where a country imposes tariffs on imports that are equal to the tariffs imposed by foreign markets on its exports. This concept is based on fairness, ensuring no country benefits disproportionately from fewer trade barriers. The goal is to create a balanced trading environment.