Global uncertainty on Trump’s tariff : Now will the world trade derail?
Global uncertainty on Trump’s tariff : Now will the world trade derail?
There is once again a Global uncertainty on Trump’s tariff stir in business markets around the world. Former US President Donald Trump has once again waged a discussion about the tariff (import duty). His announcement can prove to be a major setback not only for the American economy, but also for global trade. If Trump again becomes President and implement his tariff policies, it will directly affect China, Europe, India and other developing countries.
Introduction – What is the whole matter?
On Tuesday, Donald Trump made a big announcement, causing a stir in the global metal market. He said that the US is now planning to impose 50% tariffs on copper imports. The move aims to promote US domestic production and reduce dependence on foreign supply.
For information, the US imports about half of its copper need, with Chile’s largest source. During the cabinet meeting at the White House, Trump said, “We are going to increase the tariff on copper to 50%.” However, he did not say when these tariffs will apply. Since the arrival of this news, instability in the metal market has increased. This decline is the result of increasing fear in investors and upheaval arising from American tariff policies.
Trump announced 50% tariff : Trump’s tariff
Today, metal stocks like Hindustan Copper, Sale, Tata Steel, Jindal Stainless, Vedanta and NMDC have fallen by up to 4%. Investors are nervous about the news of US President Donald Trump imposing 50% tariff on copper. Earlier, this tariff has also been imposed on steel and aluminum and now this step on copper is also an atmosphere of an atmosphere in the market. It is believed that Trump can increase this tariff list, which can also affect other metals.
In this article we will know that : Trump’s tariff
– What is Trump’s tariff policy?
– What will be the effect on the global economy?
– What will be the challenges for India?
– Will it derail world trade?
Trump’s tariff policy : What is the whole matter?
1. Trump’s ‘US First’ agenda
Donald Trump promoted the ‘US First’ policy during his President’s tenure in 2016. Under this, he put heavy tariffs on foreign products, so that American industries would benefit. Luggage imported from China was imposed up to 25% tariffs, causing a trade war between the two countries.
2. Trump’s new warning in 2024
In the 2024 election round, Trump again announced that if he becomes President again, he will put more tariffs on China and other countries. He says that this step is necessary to protect American factories and laborers.
3. Global response
China and the European Union have criticized this, saying that this step will harm global trade. The International Monetary Fund (IMF) has also warned that the world economy can move towards recession by tariff war.
Impact on global economy : Trump’s tariff
1. The most shock to China
China is the largest trading partner in the US. If Trump again increases the tariff on Chinese goods, China’s exports will be affected. This can slow down China’s GDP growth.
2. European Union concerns
European countries also trade with America. If Trump also puts tariffs on European cars and other products, countries such as Germany and France will be damaged.
3. What will be the effect on India?
– India has taken advantage of growing trade relations with America.
– If Trump increases the tariff on Indian steel, pharma and IT sectors, Indian exports may be affected.
However, India will be less affected than in China, as its dependence on America is less.
Will the world trade derail? : Trump’s tariff
1. Interruption in supply chain
Increasing tariffs will affect the global supply chain. Companies will have to face expensive imported goods, which will increase the prices of goods to consumers.
2. Danger of inflation
Inflation (inflation) may increase in the US and Europe, as imported goods will be expensive. This will reduce consumer spending and slow economic growth.
3. Fears of global recession
The IMF and the World Bank have warned that if the tariff war increases, the global recession may occur by 2025.
Hindustan copper decline the most : Trump’s tariff
There was a huge decline in metal shares during Wednesday’s trading session. Hindustan Copper recorded the biggest decline, its shares fell 3.5% to a low of ₹ 264 per share. SEL also closed 2.35% to close at ₹ 131.82. In addition, other metal stocks like Tata Steel, Jindal Stainless, Vedanta, NMDC, Hindalco Industries, Hindustan Zinc and Jindal Steel & Power also declined by more than 1%. There is an atmosphere of fear among investors, as Trump’s tariff can prove to be a major setback for the metal sector.
In the global market too, the upheaval : Trump’s tariff
The impact of the news of Trump putting tariffs on copper is not limited to India only. Global markets have also seen rapid fluctuations in metal prices. On Tuesday, copper prices rose 17% on the comex to reach the highest level so far with a record increase of 10% in a single day. But on Wednesday, it recorded a decline of more than 4% in early trade. The London Metal Exchange (LME) also recorded a 2.4% decline in copper. In Singapore at 10:35 am, copper prices fell 0.7% to $ 9,722 per ton.
Trump’s tariff before the tariff : Trump’s tariff
This is not the first time Trump’s tariff has created a stir in the metal market. In February, when Trump had predicted a copper tariff, global traders exported a record amount of metal to the US to increase the stock before the tariff. Now the news of 50% tariff has caused a stir again. It is believed that these tariffs can be applicable in a few weeks, which may lead to more pressure on the metal prices and the stock market.
conclusion : Trump’s tariff
Trump’s tariff policy can affect the trade of not only America, but the whole world. China and Europe will suffer the most, while India may also have to change their export policies. If Trump again comes to power, the global trade war can begin once again, which can derail the world economy.
FAQ (frequently asked questions) : Trump’s tariff
1. What is tariff?
Tariff is a type of import duty, which is imposed on imported goods from another country by a country.
2. Which countries did Trump to tariff first?
Trump had targeted China, European Union, Canada and Mexico.
3. Can India also be tailed?
Yes, if Trump comes to power, they can increase the tariff on Indian steel, pharma and IT products.
4. Will the American economy benefit from tariff?
Trump claims that this will benefit American industries, but economists believe that this will increase inflation and harm consumers.
5. Is India making a strategy to avoid this?
India can try to reduce its impact by increasing trade with other countries other than the US.
This article presents a detailed analysis on Trump’s tariff policies and their global impact. If you find this information useful, share it and tell your opinion in the comment!
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