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News India Live, Digital Desk: There is a lot of political activity in America these days and it has a direct connection with us Indians. Ever since Donald Trump has talked about imposing heavy import taxes on BRICS countries, especially India, there has been panic in the markets there. But now a new and interesting twist has come in the story.
The surprising thing is that in defense of India, or rather for America’s own well-being, a US House Representative has opened a front against his government.
Let us understand in simple language what the matter is and why this decision of Trump is being challenged within America itself.
‘Not a tariff, it’s a tax on the American people’
The matter is very simple. Donald Trump had threatened to impose tariffs of up to 100% on India and other BRICS countries if they trade in their currencies instead of the dollar. It sounds like a decision of a “strong leader”, but a senior American lawmaker has exposed it.
These MPs say that this decision is not only “Illegal” Rather, it is a direct robbery of the pockets of American families.
Just imagine, if America imposes 50-100% tax on clothes, medicines or spices coming from India, then who will buy those expensive goods in the end? The general public there! A T-shirt that is available for $10 today at stores like Walmart or Target will suddenly cost $20. That is why the MP has clearly said that this policy of Trump is actually a “Additional Sales Tax” Which will only make Americans poorer.
Can the President do this? (Is it legal?)
The biggest issue of controversy is law. Those American representatives have challenged that the President does not have the right under the US Constitution to arbitrarily impose such a heavy tariff on any country, unless there is a national emergency or war-like situation.
The MP’s argument is that launching such a huge economic attack merely over the use of currency. ‘illegal’ And it won’t hold up in court. This is a form of “bullying” that goes against the rules of America itself.
What difference will it make?
It is interesting for us Indians to see that voices are being raised within America itself which are against the trade war with India. If the Trump Administration implements this rule, it will:
- Inflation will increase: The prices of things in America will start touching the sky.
- Countermeasures: India will also not keep quiet and can increase taxes on American goods (like almonds, apples etc.).
- Sourness in relationships: The strategic relations between the two countries, which are necessary to counter China, may weaken.
