US President Donald Trump’s new warning
US President Donald Trump has given a new threat to the world. He has clearly stated that 10% additional tariffs will be imposed against the countries which will support the BRICS countries against the US. However, Trump has not clearly explained what are anti -America policies. This keeps the uncertainty that which countries can come in this list? Explain that the BRICS was founded by Brazil, Russia, India, China and South Africa, but now countries like Indonesia, Iran, Egypt, Ethiopia, Saudi Arabia and United Arab Emirates have joined it. BRICS has now become a group of 11 countries. In such a situation, let us know that if Trump imposes 10 percent of additional tariffs on a country, then what will be the effect on it?
Effect on consumers: From the country where tariffs will be imposed, goods imported into America will become expensive. This will increase the prices of those goods for American consumers, which may reduce their purchasing power.
Effect on American companies: If American companies import raw materials or intermediate goods from those countries, their production costs will increase. This will make their products more expensive and can damage their competitiveness.
Exports fall: Exports from affected countries to the US will decrease due to additional tariffs. This can harm the economies of those countries that depend on the US market.
Extension of business routes: Countries affected by additional tariffs can try to find new markets for their exports, which can change global trade routes.
Effect on supply chain: Nowadays, supply chains around the world (system of making and transporting things) are already in critical condition for several reasons. If more taxes are levied, then they will become even more unstable and they may be interrupted. Due to tariffs, companies may have to make changes in their supply chain, so that they can reduce imports from countries that have been imposed tariffs.
Currency price fluctuations: Countries that will be affected by tariffs may affect the price of money. That is, their currency can be weak.
Effect on investment: Foreign investors may hesitate to invest in countries that the US has imposed tariffs, which can slow down economic growth in those countries.
Business war threat: This step can create a situation of ‘like Ko Tit’. Affected countries can also apply counter tariffs on American products. This can cause ‘trade war’ sprinkling, causing great damage to the economy around the world.
Stress may increase: Stress may increase with BRICS countries.
Effect on WTO: At the same time, this step can weaken international trade institutions like the World Trade Organization (WTO). This will bring more uncertainty in the world’s trade rules.
Possible impact on India: India is an important member of BRICS. This threat of Trump may also affect India. India is already involved in trade talks with the US and such tariffs can be complicated by such tariffs. India may face a possible impact on its exports in the US market, which may put pressure on its economy.
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