New U.S. tariffs introduced by President Donald Trump officially went into effect as the clock ticked 12:01 a.m. on the American East Coast Thursday. implications
U.S. charges on imported goods are likely to have implications for both foreign exporters and American consumers with reports saying that U.S. residents could be paying an average of 18.3% more for imported goods. implications
The tariffs will apply to products sent by more than 60 countries. The European Union countries pay tariff rates of 15% or higher. India will have to pay 25% tariff on its exports to the United States, and another 25% in three weeks from now. implications
Trump Wednesday announced through an executive order that he will levy additional import taxes on Indian goods because of the South Asian country’s continued purchase of Russian oil, raising the total tariffs imposed by the United States on India to 50%.
Trump imposes worldwide trade tariffs amid economic concerns
Pakistan, which entered a trade deal with Washington on the eve of the deadline, will pay 19% tariff on its exports to the United States. implications
The question for exporters to the U.S. would be how to tackle the additional costs. For the U.S. importers it would be a testing time as they tantalize on the way forward in terms of keeping the prices affordable or pass on the impact to consumers.
For the average Americans, the key question would be how to adjust their budgets amid price-hike.
President Trump delayed the implementation of tariff deadlines in response to market concerns. implications
Trump initially announced a 10% baseline tariff and reciprocal import charges on trading partners in April.
Following fears of economic uncertainty, recession, and volatility in stock markets, he delayed the enforcement of the new tariffs for 90 days during which the affected countries were to strike trade deals with the United States.
Afterwards, Trump set August 1 as the deadline for countries to reach trade agreements with the United States or face reciprocal tariffs past that timeframe.
The president has long argued that the U.S. trade partners have unjustly exploited American policy to promote global trade, and that America has been treated unfairly.
Trump sees tariffs as a way to fix the imbalances with trading partners under his America First policy which also seeks to bring manufacturing back to the United States.
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Ali Imran is a Washington-based journalist, who has worked for leading world news organizations as a correspondent, expert and in editorial positions. He is a published author and poet.
