The TOI Correspondent from Washington: US President Donald Trump is set to unleash global economic turmoil with an across-the-board 20 percent tax, otherwise called tariff, on all imports into the country. Collection starting immediately after a 4 p.m White House Rose Garden roll out on Wednesday (Thursday 1.30 am IST), US officials said.
After the initial rate kicks in, indications are Washington will fine-tuning tariffs with each country depending on the adjustments they make, essentially tailoring bilateral trade agreements with every country.
While this is precisely what India has been trying to arrive at with the US for the past few weeks, there will be no cut-outs or preferential treatment to start with, although it is not clear if the Washington will honor the reductions India has already announced or accommodate its willingness to cut tariffs on even more on items. It appears there was not enough time to go over sectoral itemized lists, so for now, India, and the rest of the world, have to stomach the 20 per cent tax till they can individually turn what Trump has called "liberation day" into an aberration.
Also See: Donald Trump Tariffs
The one country that will escape the scything is Israel, which on Wednesday announced that it is scrapping all tariffs on imports from US, saying the move will open up its market to competition and introduce variety to the economy -- essentially an open border, free trade policy in a country already underwritten by Washington.
"In addition to the advantages to the market and to citizens of Israel, the current effort will allow us to further strengthen the alliance and ties between Israel and the US," Israel's PM Benjamin Netanyahu said in a post on X, cementing a geo-political clinch with Washington that some analysts said virtually makes it the 51st state.
Other countries are trying to accommodate US demands short of such free trade that would decimate many sensitive sectors of their economy. For India, the red line is the agriculture/farm/dairy sector, which employs more than half of the country's work force.
India, Japan, and Vietnam are among countries that are taking a non-confrontational approach and quietly attempting to negotiate their way out of an all-out tariff war, while China, Europe, and Canada+Mexico are going headlong into counter measures, believing they have enough heft with withstand US pressure.
Except for Trump and his hardcore MAGA acolytes, even Americans have a hard time believing anything good will come out of the tariff war.
"Tariffs can be used as a tool to protect American industries. But tariffs on their own do not magically create more American jobs or lead to more U.S. production. Trump's careless "Liberation Day" tariffs will result in a massive transfer of wealth to the very top," warned former labor secretary Robert Reich, among scores of public intellectual who warned of doom.
Even some lawmakers on the right cautioned against haste with one Republican Senator warning that American farmers are one crop away from catastrophe.
But the expectation from the Trump inner circle is that while the US will suffer from short-term pain, the economy of other countries will be hurt even more grievously and therefore they will rush to Washington to negotiate a fairer bilateral agreements.
The metaphor they are using is of a house remodeling: short term pain for long term gain.
The tariffied, terrified twelve
Twelve Indian companies holding their breath about Trump tariffs
Auto sector
1. Tata
2.Mahindra
3. Bharat Forge
Pharma
4. Sun
5.Reddy
Textile
6. Arvind
7. Raymond
Electronics/IT
8.Infosys
9.TCS
10. Dixon
11. Micromax
Petro
12. Reliance
After the initial rate kicks in, indications are Washington will fine-tuning tariffs with each country depending on the adjustments they make, essentially tailoring bilateral trade agreements with every country.
While this is precisely what India has been trying to arrive at with the US for the past few weeks, there will be no cut-outs or preferential treatment to start with, although it is not clear if the Washington will honor the reductions India has already announced or accommodate its willingness to cut tariffs on even more on items. It appears there was not enough time to go over sectoral itemized lists, so for now, India, and the rest of the world, have to stomach the 20 per cent tax till they can individually turn what Trump has called "liberation day" into an aberration.
Also See: Donald Trump Tariffs
The one country that will escape the scything is Israel, which on Wednesday announced that it is scrapping all tariffs on imports from US, saying the move will open up its market to competition and introduce variety to the economy -- essentially an open border, free trade policy in a country already underwritten by Washington.
"In addition to the advantages to the market and to citizens of Israel, the current effort will allow us to further strengthen the alliance and ties between Israel and the US," Israel's PM Benjamin Netanyahu said in a post on X, cementing a geo-political clinch with Washington that some analysts said virtually makes it the 51st state.
Other countries are trying to accommodate US demands short of such free trade that would decimate many sensitive sectors of their economy. For India, the red line is the agriculture/farm/dairy sector, which employs more than half of the country's work force.
India, Japan, and Vietnam are among countries that are taking a non-confrontational approach and quietly attempting to negotiate their way out of an all-out tariff war, while China, Europe, and Canada+Mexico are going headlong into counter measures, believing they have enough heft with withstand US pressure.
Except for Trump and his hardcore MAGA acolytes, even Americans have a hard time believing anything good will come out of the tariff war.
"Tariffs can be used as a tool to protect American industries. But tariffs on their own do not magically create more American jobs or lead to more U.S. production. Trump's careless "Liberation Day" tariffs will result in a massive transfer of wealth to the very top," warned former labor secretary Robert Reich, among scores of public intellectual who warned of doom.
Even some lawmakers on the right cautioned against haste with one Republican Senator warning that American farmers are one crop away from catastrophe.
But the expectation from the Trump inner circle is that while the US will suffer from short-term pain, the economy of other countries will be hurt even more grievously and therefore they will rush to Washington to negotiate a fairer bilateral agreements.
The metaphor they are using is of a house remodeling: short term pain for long term gain.
The tariffied, terrified twelve
Twelve Indian companies holding their breath about Trump tariffs
Auto sector
1. Tata
2.Mahindra
3. Bharat Forge
Pharma
4. Sun
5.Reddy
Textile
6. Arvind
7. Raymond
Electronics/IT
8.Infosys
9.TCS
10. Dixon
11. Micromax
Petro
12. Reliance
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