Issues created by Trump’s tariff war; Kerala’s shrimp exports affected

The trade conflict between the US and China risks harming the global economy. The dispute goes beyond tariffs, affecting currencies and bonds. The US dollar has dropped to a three-year low. There has been a large-scale sell-off of US Treasury bonds. Protests have erupted in the US over rising prices. Due to the severe impact, the US president has paused high tariffs on around sixty countries for 90 days.

However, tariffs on China have been raised to 145% by the US. China responded by imposing a 125% tariff on US goods and filing a WTO complaint. Chinese President Xi Jinping warned that no one wins in a trade war and all will face crisis. Higher Chinese goods prices may boost demand for Indian products in the US. But a global recession from this dispute could lead to unpredictable outcomes, including business closures and mass layoffs.

Smartphone makers like Apple and Samsung face challenges due to the tariffs. The US is the biggest iPhone market, with 80% of units sold there made in China. The rest are made in India. Apple expanded production in India after the tariff announcement. The US later excluded smartphones, laptops, hard drives, processors, and memory chips from the high tariffs. These items are not widely produced in the US and are mainly bought from China.

Trump’s politically motivated decisions may destabilize the global economy, forcing him to reverse course. His plan to boost domestic production and cut imports may fail due to high costs. India and the EU are negotiating trade deals for tariff relief. A US-India trade agreement could lift stock markets. India’s shrimp exports, especially from Kerala, may suffer from Trump’s tariffs.