US President Donald Trump is seen starting Tariff War with his action and has created panic in the world economy. Since becoming the President of America, Donald Trump is imposing tariffs (tax) on imports from one countries one after the other and now other countries are taking retaliation. On Tuesday, March 4, Trump’s new tariff was announced against Canada, Mexico and China, and as soon as it came into force, China and Canada have announced retaliation.
Here we will tell you how much tariffs have been put on the US and what steps have been taken by those countries in response. Then you will tell you in easy words what the tariff is and why Trump is using it.
What a tariff did America put on,
President Trump has announced 25% tariff against Canada and Mexico and 20% tariff against China. The 10% tariff which was imposed on China last month has now been doubled.
China’s retaliation
The Finance Ministry of Beijing has announced 15% tariffs on many American agricultural imports including chicken, wheat, maize and cotton. Also, 10% tariffs have been applied on other products like soybean, pork, beef, fruits, vegetables and dairy products. These taxes will be applicable from March 10. Also, the Chinese Ministry of Commerce has added 10 American companies to the so -called “Unrealistic Entity List” and 15 American institutions in the export control list, which will be effective from today.
American institutions that China have targeted include American Biotech firm Illuminia. China has accused Illuminia of “discriminatory steps against Chinese companies”.
Since March 4, Illuminia has been banned on the export of gene sequencing in China. The 15 institutions added in China’s export control list include companies from Aviation, Marine Engineering and Artificial Intelligence sector.
Canada also loaded tariffs
Canada has announced that it will impose 25% counter -tariffs on US goods worth $ 107 billion ($ 155 billion) from March 4. According to the report by Reuters, Canadian Prime Minister Justin Trudeau attempted to postpone the US tariff that if the Trump administration executes its plan, Canada will impose 25 percent tariffs on American goods from Tuesday.
Mexico also prepared
According to the BBC report, while Canada and China have already vowed to apply counter tariffs, Mexico can also apply counter tariffs within 24 hours. Prior to the implementation of 25% of the US tariffs on imports from Mexico, Mexico President Claudia Sheenbam said that their country had made casual plans. He said, “In this situation, we need restraint, peace and patience. We have Plan A, Plan B, Plan C and even Plan D. ” Sheenbam said that she will talk more about Mexico’s reply on Tuesday in Canadian time.
What is a tariff?
Tariff is a tax imposed on goods imported from other countries. Companies that bring foreign goods to the country pay tax to the government. The government can increase the price of that goods by increasing this tax and reduce its price by reducing tax. That is, overall, the government controls the thing through tariffs which foreign goods in the country and how much it needs.
Usually, tariff is a special percentage of the price of a product. Let us tell you by example. Like Trump has imposed 20% tariff on China. Now this means that if any goods of $ 10 from China falls inside America, then it will be charged an additional tax of $ 2. Now it depends on the companies whether it puts some or the entire cost of the tariff on its customers.
Now the price of goods coming from China, Canada and Mexico in America can suddenly increase.
Why are Trump tariffs?
The simple answer to this is Trump’s election slogan ‘America First’. Trump is conservationist, that is, he preferred America’s business. In such a situation, the tariff tactic is a central part of Trump’s economic plans. He says that tariff will promote manufacturing and protect jobs within American, as well as the tax will increase to the government and the economy will increase.
Action on drug supply
In February, Trump announced the tariff on all three countries. Trump’s Mutabik Canada and Mexico border is trading illegal narcotics, which is being taken for prevention. Later, 25% tariff’s decision was postponed for a month when Canada and Mexico promised to promise border security.
On Monday, he was asked about whether any deal could be made from both countries, then he refused and reiterated that tariffs are being implemented from Tuesday. Trump has also announced to collect counter tariffs from 2 April.
On February its Truth social platform, Trump said that Drugs are still coming from Mexico and Canada at a large and unacceptable level. According to Trump, more than 1 lakh people died due to these drugs.
He claimed that most of these, which are of the puffed types, are being supplied from China. In his recent decision, Trump has given an additional 10% duty over 10% duty on China. The President alleges that China has not taken any steps to stop the illegal drug business.
Indian market shocked with tariff
Even before the Donald Trump Tariff, the Indian and Global stock market was seen. Now, after the announcement of tariffs by China Canada and Mexico, the stock market around the world may decline further. The Indian stock market is still trading on a decline. The SENSEX has broken about 200 points, while the Nifty has broken close to 60 points. It is not possible to guess how much this market will fall further.
Domestic trade will benefit
Trump has announced to take this tough step over drugs and immigrants entering the US border. However, apart from this, it is believed that the President is also aiming to promote domestic trade.
According to a report by news agency ANI, Trump has written a message for American farmers on his Truth social post that they should be ready to sell agricultural products inside the country as tariffs are going to be implemented from April 2 on external products.
Canada will put counter tariff
Canadian President Justin Trudeau says Trump’s tariff cannot be justified. He claims that due to these, American people may face a lot of problems.
According to a report by Associated Press, Trude says that due to the tariff, American people will have to pay more prices from ration to gas and their jobs can also go.