Donald Trump has not even taken charge as the president yet, but his statements are creating a stir all over the world. Governments and businessmen have started calculating the profit and loss.
The President of America is the most powerful man in the world. Those who had forgotten have probably been reminded of this. Donald Trump has not even assumed the office of president after the results of the US presidential elections, but his statements are creating a stir all over the world. Governments and businessmen are calculating where and on whom and how much impact the Trump government is going to have this time. The governments of those countries are most worried about whose relations with Trump are likely to be bad or the big businessmen engaged in international trade, whose business may be affected by Trump.
Donald Trump is anyway known for working in the style of Khulna Khel Farrukhabad, and this time it is also special that this is his last term; that is, he is not worried about contesting or winning the elections next time. Therefore, this time Trump's policies will be in such a way that he can leave his mark on history, fulfill his unfulfilled desires, or, say, create a legacy.
Trump especially emphasizes American industry, trade, and employment, and as soon as he won the election, he declared war on the business front. Trump has clearly warned that as soon as he becomes the president, that is, on the very first day, he will sign an order to increase the tax, i.e., tariff, on imports from China, Canada, and Mexico. He says that immediately after taking the oath, he will issue an order in which 25 percent additional duty will be imposed on all goods coming from Canada and Mexico. He will also impose 10 percent more duty on whatever additional duty will be imposed on China. He says that he will do this to stop drug smuggling and illegal infiltration in America.
This is not a trivial matter. The biggest part of America's foreign trade is with these three countries. America is not only the richest country in the world; it is also the world's largest buyer or importer. Of the approximately three lakh sixty thousand crore dollars, or 3.6 trillion dollars, that America imports every year, these three have a 40 percent share. Meaning, the duty that is being talked about is going to affect the business of about 1.44 trillion dollars. However, Trump has also spoken to the Canadian Prime Minister after this threat, and the Mexican government has also issued statements that it is trying to stop illegal infiltration. The Chinese government, however, is saying that it is taking adequate steps to stop drug smuggling, but at the same time, it also says that if a war breaks out on the trade front, then no one will benefit from it.
There is some truth in this, because the increase in import duty does not only affect the other country but also affects your own citizens. For example, if 25 percent import duty is imposed on imports worth one lakh dollars, then for the buyer that item will cost 1.25 lakh dollars. Because of this, people may reduce their purchases, which will then affect the exporting country. In election rallies, Trump has threatened to impose a 100 percent duty on imports from China and Mexico. This is also a matter of concern for these countries, because last year 80 percent of Mexico's exports and 75 percent of Canada's exports went to the US. Although, in terms of exports from China, the US ranks after ASEAN countries and the European Union, yet the maximum imports to the US are from China, and it supplies more products than Canada and Mexico. However, the US is not as dependent on China as China is on the US. It is believed that the Chinese government is currently busy preparing plans to avoid weakening its position when it comes to negotiations with the US.
Donald Trump's entire focus is on increasing and saving industry and trade in the US and dealing with the employment crisis within the country. During the elections and even before, he has given many hints of making the path of goods and people coming from abroad difficult. It is yet to be clear whether, apart from these three countries, the rest of the world will also have to face the challenge of tariffs. This question is especially important for India, because India's maximum exports go to the US. However, for some time now, India's largest trading partner in terms of imports and exports has been the European Union, but America is number one on the export front. In the year 2023, 17 percent of India's exports have gone to America. In such a situation, if the Trump administration decides to increase the duty on all imports from America, then the concern is natural. There are reports that there is a lot of discussion going on in the Commerce Ministry on this issue.
By the way, in front of this concern, a bigger hope is also visible that if the goods going to America from these three countries become expensive, then what new opportunities can open up for India? Not only the Commerce Ministry, but this calculation is also being done in other departments related to the government. Niti Aayog CEO BVR Subramaniam has already said that this is a huge opportunity for India. There is going to be a huge change in America's foreign trade, and if we can prepare ourselves, then this will be a great opportunity. The big question is whether we can take advantage of this opportunity. Subrahmanyam said that we are calculating this, and you can see some new steps in the coming months.
However, it will not be that easy, because China is also gearing up to deal with the situation; in such a situation, only acting with wisdom and courage can help us sail through.
Post a Comment
0Comments