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In a move that could reshape global trade, US President Donald Trump announced a series of new tariffs on Wednesday, targeting multiple countries, including major trade partners China, the European Union, India, and several Southeast Asian nations. The tariffs affect key industries such as automobiles, dairy, steel, and electronics, raising concerns of a possible global trade war.
Heavy Tariffs on Major Trade Partners
he 78-year-old President declared a 34 percent tariff on imports from China and a 20 percent tariff on the European Union, two of the United States’ largest trading partners. India was hit with a 26 percent “discounted reciprocal tariff,” signaling a more measured but still significant increase.
Speaking passionately about the decision, Mr. Trump justified the tariffs as a way to counter decades of trade imbalance.
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” he said.
Declaring the day as a turning point for American industry, he added:
“This is Liberation Day. This will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed.”
The President has long argued that US tariff rates are generally lower than those of other countries, and he has been pushing for what he calls “reciprocal tariffs” to level the playing field. His administration also cites non-tariff barriers imposed by other nations as a disadvantage for American exporters.
Global Markets React with Jitters
The announcement caused instability in global markets, with many economies bracing for potential retaliation or economic slowdowns. For days leading up to the announcement, financial markets showed signs of uncertainty, as global leaders called for negotiations to avoid escalating tensions.
Thailand Prepares to Negotiate US Tariffs
Thailand, which has been hit with a 36 percent tariff, has assured that it has a “strong plan” to handle the economic impact.
Prime Minister Paetongtarn Shinawatra spoke to reporters on Thursday, confirming that the Thai government is preparing a strategy to mitigate the effects of the tariffs and seek diplomatic negotiations.
“We have a strong plan,” said Paetongtarn. “We have prepared several steps, including sending our permanent secretary to talk with them… I think we can still negotiate.”
Thailand, along with other Southeast Asian nations, is concerned about the harsh trade restrictions imposed by the US. Vietnam and Cambodia were hit even harder, with tariffs of 46 percent and 49 percent, respectively.
Taiwan Calls US Tariffs “Highly Unreasonable”
Taiwan, another affected country, has also expressed strong opposition to the 32 percent tariff imposed by the Trump administration.
Cabinet spokeswoman Michelle Lee criticized the tariff decision, calling it “highly unreasonable and deeply regrettable.”
“We will initiate serious negotiations with the United States,” she stated, emphasizing Taiwan’s commitment to diplomatic discussions.
India Analyzing Impact of 26% Tariff
India, which faces a 26 percent reciprocal tariff, is currently assessing the economic consequences of the US decision. A senior government official from the commerce ministry confirmed on Thursday that a detailed analysis is underway to understand how the tariffs will affect Indian exports.
A government source indicated that while the tariff hike is a challenge, India does not see it as an insurmountable setback.
“It’s a mixed bag, not a complete setback,” the official stated.
Global Trade War on the Horizon?
With multiple nations affected and some already planning retaliatory measures, concerns are growing about a potential global trade war. Experts believe that unless the US and its trade partners reach new agreements, these tariffs could lead to higher consumer prices, reduced trade volumes, and economic slowdowns worldwide.
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