New Delhi:
Donald Trump’s “mutual tariffs” Truth Social Post Early on Thursday (6am ET, 5:16pm) – hours before meeting Washington, DC Prime Minister Narendra Modi – If you need confirmation , I reaffirmed everything, if not everything. The conversation between them focused on import obligations and highlighted the continued attachment of the US President to weaponize trade tariffs.
In a brief post with trademark self-conditioning, Trump wrote, “Perhaps the best three weeks ever, but today is a big one: Mutual tariffs!!!”
“Make America great again!!!”
“Mutual Tariff” mail was an echo from Wednesday that promised an order that could open new fronts in a rapidly growing trade war with other countries, including allies.
Donald Trump said he would hold a mutual tariff press conference at the White House at 1pm local time (which means 11:30pm IST).
NDTV explains | What is mutual tariff?
The US President argues that his “mutual tariff” system – essentially, the “eye” response to a country that has an obligation to import American products is “the only fair way of trading.”
The White House said Wednesday that Trump’s “mutual tariffs” plan could be announced before a meeting with Prime Minister Modi later today.
Read | Trump signs mutual tariff orders ahead of Prime Minister Modi’s visit to the US
If this really happened, we will see the world send a message about the US position on tariffs, at least by the Trump administration.
US Prime Minister Modi
Modi arrived in the US early today for the first bilateral meeting since Trump was elected for the second term in November. He did so behind the agenda of hard-hitting nationalists, including a promise to deport illegal immigrants and jumpstart the manufacturing sector of stón.
Read | Highly likely immigration to US PM, tariffs and Trump agenda
Actions on the frontline included sending out military plane roads of 104 Indians who illegally entered the United States. Deportation attitude – deportees were bound – caused a row in India.
Read | “You’ll be deleted”: Video of Indians in the US Border Patrol Chain
On the latter side, Trump slapped 25% tariffs on steel and aluminum imports. This hopes to promote the production and consumption of the same products created by US companies.
A 25% tariff will also apply to India (threw a point crash of over 1,000 points this week on the stock market).
India is not a particularly large steel supplier for the US, but it is one of the world’s largest major producers of aluminum, and the US is the best export market.
Read | Trump’s tariffs cause meltdowns, Sensex crashes over 1,000 points
Therefore, aluminum exports to the US could be reduced. Producers like Vedanta and Hindirko will eventually find alternative markets, but it will take time to absorb the excess.
Read | “Challenge to Building on Our Collaboration”: PM Mods on Meeting Our Trump
Prior to his visit to the US, the Prime Minister talks about the “cooperation” between him and Trump during the latter’s first term (2017-2021), and hopes that strong personal connections will deepen the Indian-US partnership. He said he was there. Technology, trade, defense.
Trump targets India
Trump previously called India a “very big abuser” on trade, and his top economic adviser Kevin Hassett picked the country in an interview with CNBC that he had “very high” tariffs .
Last month he named India, Brazil and China the nations.
Read | “America First”: Trump swears tariffs on countries that “mean” us
Amid Trump’s Tirad on tariffs, India has significantly reduced its habit this month regarding importing American products, such as high-end motorcycles, cars and smartphone components. apple.
Read | Amid the threat of tariffs, India reduces import duties on US bicycles, cars
However, Finance Minister Nirmala Sitharaman said rationalizing custom obligations is not India’s response to Trump’s tariff announcement. “We are trying to strengthen the foundations of the Indian economy,” she said in an exclusive Post-Integration Budget 2025 interview with NDTV.
Trump 1.0 and 2.0 tariffs
Trump introduced similar tariffs in his first term (2017-2021), but later, several countries such as Canada and Mexico and his successor Joe Biden have been exempt from the UK and Japan. negotiated concessions, namely tax-free quotas, to tax-free allocations. And the European Union.
The US saw manufacturing employment conflicts as a result of tax cuts in Trump’s first term, but things changed after the introduction of steel and aluminum tariffs in March 2018.
In 2019, the first year these tariffs were enacted, the US lost manufacturing jobs and the wider factory sector went into slump as industrial production fell.
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