Trump Makes China ‘Enemy Number 1’ with Reciprocal Tariffs
US President Donald Trump & China President Xi Jinping (Image credit X.com)
US Unveils Reciprocal Tariffs in 10-50% Range, Asian Tigers Worst Hit
By TRH News Desk
New Delhi, April 3: The US has slapped a 26 per cent reciprocal tariffs on India. US President Donald Trump also unveiled a baseline tariff of 10%. Reciprocal tariffs in India will come in effect from effective April 9.
Trump set up unveiling of reciprocal tariffs as a global event, calling it a “Liberation Day”. Reciprocal tariffs on India and Japan are almost in same category at 26 per cent and 24 per cent respectively. India and Japan along with Australia are close partners of the US in the Indo Pacific grouping Quad.
The Trump reciprocal tariffs have come harsh for the Asian Tigers — the east Asian export-driven economies. China got 34 per cent reciprocal tariffs. They will be in addition to existing 20 per cent tariff. The dragon, thus, gets a hit of a whopping 54 per cent.
Cambodia, Laos and Vietnam — the Asian tigers – have been served with reciprocal tariffs of 49, 48, and 46 per cent respectively. Incidentally, China often is said to have set up manufacturing bases in several countries to short-circuit trade war with the US after Trump slapped tariffs against the Communist nation in 2017, in his first term.
Vietnam, which was being described as big on Trump target, also got a 46 per cent reciprocal tariff. Indonesia, another Asian tiger, has got a 32 per cent reciprocal tariffs. The big message of Trump Reciprocal Tariffs appears that Washington will shut down all shops that China sets up in other countries to access the US market. Experts have noted that China set up huge manufacturing bases in east Asian nations and Latin America to access the US market after the onset of trade war in 2017.
The East Asian stock markets crashed on Thursday morning. Indian stock market is also expected to crash. The only balm for Indian exporters is discounted rates of reciprocal tariffs at 26 per cent.
Even Bangladesh has been slapped with a 37 per cent reciprocal tariff. Bangladesh is already reeling under acute economic crisis and a collapse of the export driven industries such as textile and fashion products may trigger internal instability.
The US aims to boost exports to India to the tune of over $5 billion annually with reciprocal tariffs. Prime Minister Narendra Modi in his joint press conference with Trump at the Oval Office in Washington a few weeks ago had set a bilateral trade target of $500 billion.
Trump reiterated that Modi is his friend. But he also asserted that there exists “huge trade barriers in India”. India and the US are said to be at the final stage of wrapping up a trade deal.
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