Quick read: Trump's tariffs
- GO Editorial
- 1 day ago
- 2 min read

US President Donald Trump has announced wide-ranging reciprocal tariffs that are set to disrupt global trade in ways not seen in half-a-century.
Details of Tariffs Announced by Donald Trump
General Tariff Policy:
President Donald Trump announced sweeping "reciprocal tariffs" on imports from multiple countries during his "Liberation Day" address.
A baseline tariff of at least 10% was applied to all goods entering the U.S., with higher rates for specific countries and sectors.
Tariffs on India
Tariff Rate: A 26% tariff was imposed on all Indian goods entering the U.S.
Reasoning: Trump claimed India imposed high tariffs on U.S. goods (up to 52%) and described the move as a step to "level the playing field".
Sectors Affected:
Key industries such as automobiles, pharmaceuticals, IT services, textiles, engineering goods, and gems & jewelry are expected to be hit hardest.
The tariff adds to an earlier 25% levy on foreign-made automobiles, further affecting India's auto exports.
Economic Impact:
Indian exporters face reduced competitiveness in the U.S. market, leading to a potential decline in export revenues.
Companies like Tata Motors and Sona Comstar already reported stock declines following the announcement.
India may consider reducing tariffs on $23 billion worth of U.S. imports to mitigate the impact, but no agreement has been finalized.
Tariffs on China
Tariff Rate: A massive 54% tariff was imposed on all Chinese imports, combining a new 34% levy with earlier tariffs of 20%.
Scope:
The tariffs target nearly all of China’s $525 billion in exports to the U.S.
Economic Impact:
Expected to severely hurt Chinese exports, potentially decimating trade volumes with the U.S.
China condemned the move and pledged retaliatory measures, escalating trade tensions between the two largest global economies.
Chinese Response:
China criticized the tariffs as unilateral and pledged countermeasures to protect its interests.
Some Chinese manufacturers have relocated operations to other Asian countries, but these nations also face high tariffs (e.g., Vietnam at 46%, Cambodia at 49%).
Broader Impacts
The tariffs are part of Trump’s strategy to reduce trade deficits and protect American industries.
Other affected regions include:
European Union: 20% tariff.
United Kingdom: 10% tariff.
Japan: 24% tariff.
The policy is expected to disrupt global trade patterns, spark retaliatory measures, and potentially lead to economic uncertainty worldwide
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