In recent developments, U.S. President Donald Trump imposed reciprocal tariffs on 60 countries, including India, with a 26% tariff on Indian imports.
This decision led to a decline in not only the Indian stock market but also global markets. Now, in retaliation to Trump’s actions, China has decided to impose an additional 34% tariff on American goods.
Effective from April 10
China’s move comes after the U.S. imposed a 34% duty on Chinese exports. The new Chinese tariffs, set to take effect on April 10, will target American products.
According to the state news agency Xinhua, China has also filed a complaint with the World Trade Organization (WTO) regarding the U.S.’s “retaliatory duties” on its trading partners.
What is a Reciprocal Tariff?
A reciprocal tariff is when one country raises import duties on goods from another country, and the second country responds by imposing the same level of tariff on products from the first country.
For example, when India imposes high tariffs (ranging from 60% to 100%) on many goods, the U.S. responds by imposing similar tariffs on Indian products.
In contrast, U.S. tariffs on most products from other countries are generally low, typically within 10%.
Key Points from Trump’s Address on Tariffs
Trump emphasized that the U.S. should now prosper, as previous trade deals had been unfavorable to American businesses.
A 25% tariff was imposed on the auto sector.
Trump pointed out that while the U.S. charges a mere 2.4% duty on motorcycles from other countries, nations like Thailand charge much higher rates.
Countries like India (60%), Vietnam (70%), and others impose higher tariffs on U.S. imports.
The new tariffs under Trump’s plan include:
A 26% tariff on imports from India
A 34% tariff on China (the highest)
A 46% tariff on Vietnam
20% tariff on the European Union
31% tariff on Switzerland
32% tariff on Taiwan
Only a 10% tariff on imports from the United Kingdom.
As global trade tensions rise, these new tariffs are expected to have widespread impacts on international trade dynamics.
