The US President Donald Trump’s “reciprocal” tariffs came into effect, including a staggering 104 per cent tariff on Chinese imports. The White House confirmed that the new tariff structure, follows through on President Donald Trump’s ultimatum to Beijing to roll back its retaliatory 34 per cent duties on American goods.
Donald Trump’s 26 per cent tariffs on imports from India also came into full effect today. Trump announced the reciprocal tariffs on the 3rd of this month as part of his ‘Liberation Day’ announcement event. Besides India, Trump announced 46% tariffs on Vietnam, 32% on Taiwan, 25% on South Korea, 24% on Japan and 20% on the European Union.
According to Goldman Sachs, it could be a significant blow to China’s economy that could slash Beijing’s growth by 2.4 percentage points. It said China, which has set a 5 per cent growth target for the year, may fall short if the trade tensions intensify. Goldman Sachs is forecasting a lower 4.5 per cent growth, cautioning that risks to this outlook remain tilted to the downside.
Meanwhile, on US tariff impacts, Union minister Piyush Goyal said the government is working on a bilateral trade agreement as was decided between Prime Minister Modi and US President Trump in February. He added that India had a series of engagements, all of which are going in the right direction.
Earlier this week, US Secretary of State Marco Rubio and External Affairs Minister S Jaishankar discussed the tariff situation. According to US officials, both sides reaffirmed their commitment to a fair and balanced trade relationship.