US President Donald Trump has unveiled a massive new tariff policy, slapping a 10 per cent duty on nearly all imports and a 26 per cent reciprocal tariff on Indian goods. The announcement, made in the White House Rose Garden, sent global markets into turmoil, with Wall Street plunging 3.3 per cent amid fears of escalating trade tensions.
-
A 10 per cent baseline tariff applies to all imports starting April 5.
-
Countries with high tariffs on American goods will now face reciprocal tariffs, effective April 9.
-
India, which Trump claims imposes a 56 per cent tariff on US goods, will be hit with a 26 per cent duty.
-
A 25 per centtariff on foreign-made automobiles will take effect at midnight ET on April 4.
- Advertisement - -
The policy exempts Mexico and Canada under the USMCA agreement, while other non-compliant nations will continue to face a 25 per cent tariff.
Calling the current trade system “horrendous” and “unfair,” Trump argues that America has suffered due to trade imbalances and industrial decline. He emphasized that these tariffs aim to protect US industries, especially steel, automobiles, and manufacturing, and counter what he calls “predatory trade practices” by major global exporters.
“We are finally standing up for American workers,” Trump declared. “For too long, we’ve allowed foreign nations to rip us off, and that ends now.”
The announcement triggered an immediate meltdown on Wall Street, with the S&P 500 nosediving 3.3 per cent and Dow Jones plunging 950 points before slightly recovering. Investors fled to safe-haven assets, pushing gold prices to a record $3,149 per ounce.
Asian and European markets also tumbled, with India’s Sensex falling 1,200 points and Japan’s Nikkei dropping 2.5 per cent as fears of a global trade war intensified.
