Shrinking impact of Trump’s tariff wars
Customs and taxes are methods used in economics to generate income. There are certain methods and practices for using these. No country increases taxes by two or three times in one go. If they were to increase them in that way, it would be the main reason for economic chaos and unrest in that country. The highest number of tax evasion cases were registered in India during the period when income tax was the highest. There is no point in blaming only the people for the increase in fraud when taxes and regulations increase. The ones in power should handle all this in a rational manner.
Similarly, friendship between countries of the world also exists on the basis of some mutual understanding. Regardless of this, US President Donald Trump has been playing a reciprocal game called a tariff war. Trump used tariffs as a weapon to bring the whole world under the control of the United States. However, Trump suffered a setback in his own country with the US Supreme Court ruling. Although the tariff was reduced to zero with the court ruling on Friday, the president used his special authority to impose a temporary tariff of 10 percent for 150 days and increased it to 15 percent the next day. Trump responded that this is an unpatriotic and anti-American ruling to sabotage his tariff plan.
However, most citizens of the United States and other countries of the world, including India, consider this verdict a relief. The US court viewed Trump's unilateral action of imposing additional tariffs on various countries, including India, as an encroachment on the sovereignty of countries. Exporters and economic experts indicate that the 18 percent tariff that India agreed to impose on Indian products as part of the US agreement will now be reduced to 15 percent. This will be above the applicable tariff as a favourable trading partner. That is, if there was a five percent tariff earlier, it will now be levied at 20 percent.
India has not yet made a public response to the US court ruling. The Union Commerce Ministry has responded by saying that it is studying the implications. However, in the wake of the new US court ruling, the opposition has demanded that the trade agreement be frozen and the terms be renegotiated. It would be better for India to take a stand after assessing the further steps of the US administration on the tariff issue. The countries that have suffered in the tariff war should also thank Indian-origin lawyer Neal Katyal, who played a key role in this ruling by making rational arguments in the US court, pointing out Trump's unilateral tariff moves one by one. Neal is the son of Indian immigrants from Punjab. Countries around the world are eagerly awaiting Trump's new ways to overcome the setback.