US President Donald Trump has imposed a staggering 104% tax on all Chinese imports, triggering a trade war between the two superpowers, China and the US. The US has condemned this blackmail. Beijing has warned that it will fight to the end in this trade war launched by the US if both countries do not back down in this war. China has said that it does not mind taking harsh and coercive steps to protect its interests.The tariffs imposed by the US and China on each other will hit both economies, with Europe set to face an additional 20 percent tax. Since Trump imposed a 10 percent tax over the weekend, fears of a global recession have been raised as the global economy collapses. Tariffs on imports into the United States continue to rise.Xi Jinping made it clear that China has also taken into account the uncertain situation when considering its economic policies.Chinese Premier Li Keqiang said that Beijing’s macroeconomic policies this year have fully taken into account various uncertainties. The Chinese premier expressed the view that openness and cooperation are the right path for all.During talks with European Commission President Ursula von der Leyen, Chinese Premier Li Keqiang said that despite the US president’s threat of tariffs, his country is ready to deal with any negative external shocks.He also expressed optimism that the world’s second-largest economy will maintain sustainable and healthy economic growth in 2025.In contrast, the US believes that its policy will revive America’s lost manufacturing base by forcing companies to relocate to the US. But experts say the tariffs will increase inflation. Trump said that “the United States is getting about two billion dollars a day from imports into the United States.” China has responded to the position taken by the United States. Also, there is internal opposition to Trump’s position from the United States, and it is unlikely that the US will change its position.Trump initially announced an additional 34% tax on Chinese goods. However, after Beijing imposed its own 34% tax on American products, Washington promised to impose another 50% tax. The cumulative tariff increase on Chinese goods during Trump’s current administration is 104%, excluding the new agreements, when counting existing tariffs imposed in February and March.Chinese Foreign Ministry spokesperson Lin Jian told a press conference, “The Chinese people’s legitimate right to development is inalienable. China’s sovereignty, security, and development interests are inviolable.”China has labeled the punitive measures against all US trading partners as a specific example of US unilateralism, protectionism, and economic coercion. China’s response to the US action is not only in China’s interests. The purpose behind it is also to protect international trade rules.Mahadev Ghatole, Assistant Professor, Kamaladevi College, Mumbai, opined that, “This trade war will not have much impact on India. Two reasons for this are the good relations between the Indian government and the US and the fact that America’s biggest enemy is China, and they may have introduced these reciprocal tariffs to subdue China. China has a large trade with the US. Therefore, if tariffs are increased on China, the US will benefit more. India does not have such a significant impact. Because India has a 26 percent tax, and China has a 104% tax.The consequence of this was that Apple had already said that we would manufacture iPhones from China in India, which means that the iPhone would have a Made in India stamp on it. And if this iPhone is exported from India to the US, then since it has a Made in India stamp on it, it will have a 26 percent duty instead of the 104 percent duty. This will benefit both India and America but will harm China. And it is said that China’s economy is based on exports to America. This may harm China.India can also benefit from the fact that a large amount of medicines are exported from India to the US. Some may think that this is a crisis for India. But we can also benefit from this crisis. Because 0% duty is imposed on the medicines exported from India to the US, and the US President is not imposing more tariffs on India just for the sake of his own country. Even if he has said that in the future we will impose direct duties on pharmaceuticals as well. Then India will benefit from it.”Now, only time will tell how long this trade war will last, what will happen to the world, and whether India will survive.
Dr. Anupriya Gaikwad
For True to Life News Media Pvt. Ltd.