April 8 – While Donald Trump has made many important changes and decisions since coming to power, another of his decisions has started a decline in the global economy. Markets around the world have collapsed since Trump imposed global tariffs. Trump’s economic policies have raised the possibility of an intensifying trade war between the US and China, the world’s two largest economies and global rivals.On Monday, the US president made it clear that the US has no intention of stopping global import tariffs while negotiating with other countries.The US has threatened China that if China does not withdraw the 34% tax on imports from the US, the US will impose a 50% tax on goods imported from China to the US. Since the US is a large market for China, this will have a major impact on Chinese entrepreneurs. China exports electrical products, machinery, computers, furniture, toys, vehicles, etc. to the US. On the other side the US also exports oilseeds, grains, machinery, and medicines to China.China’s Ministry of Commerce has made it clear that China will never accept blackmailing from the United States, and that pressuring and threatening China is not the right way to negotiate.Chinese Embassy spokesman Liu Pengyu clarified in a statement that the US’s hegemonic move is a move to promote “America First” rather than to establish international relations.In response to the way China has expressed its resistance against the United States, Trump has threatened China through social media that it should cancel this resistance or else China will face a 50% tax on imports to the United States. Trump has also threatened China that all meetings with China will be canceled.Trump’s stance sent Asian stock indexes plummeting. Hong Kong’s Hang Seng Index fell more than 13%. US stock markets fell sharply again on Monday, but later recovered. London’s FTSE 100, Europe’s biggest market, closed down more than 4%. Taiwan and Singapore also suffered bigger losses. Shares in Thailand and Indonesia fell more than 4% and 9% respectively.Despite the negative atmosphere around the world against Trump’s decision, some countries are seen negotiating. Israel has assured Trump that it will address the trade imbalance with the US. Japan is sending a negotiating team to discuss tariffs. European Commission President Ursula von der Leyen has offered Trump a ‘zero zero zero deal’. *What will be the impact on India?* While explaining the impact this will have on India while it is having repercussions all over the world, economics professor Rupali Patil expressed her opinion in this regard and said that Trump has threatened to impose an additional fifty percent tax on China from April 9. It can have some direct and indirect effects on global trade as well as India. For example, if the US increases tariffs on Chinese goods, the US may look for alternative countries for trade. And this can provide an opportunity for India. Some industries in America are dependent on China. Industries may migrate to India.If Chinese goods cause problems in the American market, Chinese goods can be sold at a cheaper price in a country like India, which has a large market. That is, China can resort to dumping. And this trade war can have an impact on international trade as well as on stock markets and investments. That is, it can create instability in the global market. And India cannot escape this.This means that Trump’s decision for India could create opportunities in some industries and this could increase India’s trade, i.e. exports. But at the same time, if global instability arises, then India needs to look at it strategically, Prof. Rupali Patil also expressed her opinion.
By Dr. Anupriya Gaikwad
For True to Life News Media Pvt. Ltd.