Tariff War / Trump's tariff will finish off China and Pakistan, India gets relief

The US President has imposed reciprocal tariffs on countries around the world. 26% tariff was imposed on India, 34% on China and 29% on Pakistan. The US has imposed tariffs with a 50% discount. This decision will impact global trade and may lead to fluctuations in the markets.

Tariff War: US President Donald Trump has announced to impose reciprocal tariff on countries around the world. This tariff will come into effect after 12 midnight as per US time. The special thing is that this tariff has been implemented with a discount of 50 percent. That is, if a country imposes an average tariff of 70 percent on American products, then America will impose 35 percent tariff on that country.

Tariff rates on major countries

US President Trump released a list of 184 countries including the European Union, which are big trading partners for America. There are 36 countries in this list, on which more tariff has been imposed than India. These include Pakistan and China. 29 percent tariff has been imposed on Pakistan and 34 percent on China.

Tariff on India

26 percent reciprocal tariff has been imposed on India. Commenting on this, President Trump said that India is a challenging trading partner. However, he described Prime Minister Narendra Modi as his good friend. In India, an average of 52 percent tariff is imposed on American products, due to which America has decided to impose 26 percent tariff on Indian products.

Impact on the economy of China and Pakistan

China imposes 64 percent tariff on American products, so America has imposed 32 percent tariff on China. On the other hand, Pakistan imposes 58 percent tariff, so America has imposed 29 percent tariff on Pakistan. This move can have a deep impact on the economy of both these countries.

Impact on other countries

In the list of 184 countries, 36 countries have been imposed higher tariff than India. These include Vietnam, Taiwan, Thailand, Switzerland, Indonesia and Cambodia.

Impact on the stock market

After the announcement of reciprocal tariff, the Indian stock market is expected to rise. Investors were assuming that America would impose tariff at full rates, but due to the 50 percent discount, it can be a positive sign for the market. However, a 25 per cent tariff on the US auto industry would hit Indian companies, especially Tata Motors, which produces Jaguar Land Rover in India and exports to the US.

US stock market reaction