Trump Threatens Tariffs on India, China, and Brazil, Citing Harm to US Economy

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Posted by NewAdmin on 2025-01-29 04:32:28 |

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Washington D.C. |

January 29, 2025Former US President Donald Trump has reiterated his commitment to imposing tariffs on high-tariff nations, including India, China, and Brazil, claiming they "harm" America’s economy. Speaking at a House Republican retreat in Florida, Trump stressed the need to bring manufacturing back to the US and ensure fair trade policies.

We’re going to put tariffs on outside countries and outside people that really mean harm to us. They basically want to make their country good, but we’re not going to let that happen at our expense. We will put America first,” Trump stated during his address.

Trade Wars and Tariff Policies

Trump’s statement aligns with his long-standing stance on trade protectionism, which he previously pursued during his presidency. His administration imposed tariffs on Chinese goods, triggering a trade war with Beijing in 2018-2019. Now, as he eyes another presidential term, his renewed tariff threats target not just China but also India and Brazil, countries he accuses of implementing high tariffs on American products.

India, for instance, has historically maintained higher tariffs on several imported goods, including electronics, automobiles, and agricultural products, to protect domestic industries. However, as the largest trading partner of the US, with bilateral trade exceeding $120 billion in FY24, India remains a crucial economic ally.

Impact on India and Global Trade

With the possibility of new US tariffs, India’s commerce and industry ministry has begun inter-ministerial talks to assess and mitigate potential risks. A significant portion of Indian exports to the US includes pharmaceuticals, IT services, textiles, and machinery. Additional tariffs could disrupt supply chains and impact Indian businesses relying on the American market.

The US Chamber of Commerce and major trade associations have expressed concerns that escalating trade tensions could lead to retaliation from affected countries, further impacting global trade. Experts believe that if such policies are enforced, they could disrupt economic relations and force Indian companies to explore alternative markets.

Trump’s Vision for ‘Made in America’

Trump emphasized that the only way to avoid these tariffs would be for companies to set up manufacturing plants within the US.

If you want to stop paying the taxes or the tariffs, you have to build your plant right here in America. That’s what’s going to happen at record levels. We’re going to have more plants built in the next short period than anybody ever envisioned before because the incentive is going to be there,” he declared.

India’s Response and Future Strategy

India’s policymakers are weighing their options as trade tensions rise. Some experts suggest that India could negotiate exemptions or enter a new trade agreement with the US. Meanwhile, business leaders and economists warn that these tariffs could increase costs for American consumers while also affecting global supply chains.

At a time when India is positioning itself as a global manufacturing hub under its Make in India initiative, such trade restrictions could pose challenges to its economic growth and export strategies.

As Trump pushes for an aggressive trade policy to boost domestic manufacturing, the global business community is closely monitoring how these tariff threats evolve. If implemented, they could redefine trade relations between the US and key economies like India, China, and Brazil, potentially sparking new negotiations or retaliatory measures.

India, in particular, must prepare for policy shifts and trade negotiations that protect its economic interests while maintaining strong diplomatic ties with the US.

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