Donald Trump News / Trump sticks to reciprocal tariff plan, calls April 2 as freedom day for America

Donald Trump News: US President Donald Trump has declared retaliatory tariffs from April 2, calling the tariffs being imposed by several countries, including India and China, unfair. He clarified that the US will now impose the same duty on imports from those countries as they impose on US exports. This policy is being adopted with the aim of improving America's trade balance and supporting domestic industries.

The concept of reciprocal tariff

This new policy of the Trump administration will be based on 'reciprocal tariff', which means that the US will set the same duty rates for countries that impose higher rates on US products. These tariff rates will be decided by taking into account not only direct duty but also non-tariff barriers. A 20% tariff has already been imposed on China and a 25% duty on steel and aluminum.

Apart from this, Trump has also asked the CEOs of major automobile companies to shift production from Canada and Mexico to the US, thereby boosting domestic production and employment.

'April 2: New chapter for US trade'

In his address on Sunday, Trump called April 2 a 'liberation day' for the US. He said that this will be the day when America will get back some of the money that previous governments lost due to unfair trade agreements.

Trump also made it clear that the US will impose additional tariffs in automobile, steel and aluminium industries. Apart from this, if any country tries to exclude American products from its market through uneconomic means, then the US will also take similar action.

Impact on global trade

In his first address of his second term to a joint session of the US Congress, Trump named several countries including India, China, European Union (EU), Brazil, Mexico and Canada, which were accused of unfair trade practices with the US.

Specifically, accusing India of imposing over 100% auto tariffs, Trump indicated that the US will now adopt a tough stance in its trade policies. He said that for decades, high tariffs have been imposed on America, but now America will retaliate.

International reactions and possible challenges

This policy is likely to increase tensions in global trade. Big economies like India, China and the European Union can also take retaliatory steps, which can lead to a trade war. Also, this policy can also affect American companies and consumers because foreign goods becoming expensive can increase prices in the domestic market.

This decision of the US government is an attempt to restore the trade balance, but its far-reaching effects are yet to be assessed. In the coming months, it will be interesting to see how other countries react to this policy and in which direction the global trade equation moves.