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News India Live, Digital Desk: The return of Donald Trump to American politics has created a new stir in markets around the world. Recently, Trump has said something which has raised lines of concern on the forehead of many big countries including India. The matter is very simple but serious. Trump wants to keep America’s farmers happy, but he wants to cover its expenses through ‘tariff’ i.e. import tax collected from other countries.
Let us understand in simple language what is the matter and what impact it can have on our country, especially our rice exports.
Money to farmers and taxes on others: Trump’s ‘masterstroke’
Trump has clearly said that if any country, be it China or India, tries to weaken the US dollar or float its own currency (like the BRICS countries are thinking), then it will have to pay a heavy price. He has also indicated in his social media post that he will use the earnings from the tariff to promote his American farmers, manufacturers and tourism.
The meaning is clear, if any country like India or Mexico wants to sell its goods to America, it may have to pay heavy taxes. And Trump will put the same money in the pockets of his vote bank i.e. American farmers.
Why is India’s rice in danger?
Now let’s talk about our meaning. Trump has specifically taken the names of Mexico, Canada and China, but it is clear from his words that India can also fall into this trap. Recently, Trump had mentioned an old incident where he had taken the name of “Indian Rice Imports”.
India sells large quantities of Basmati and non-Basmati rice to the US. If Trump increases tariffs as he says, Indian rice will become costlier in the US. If our rice becomes expensive there, people there may reduce their purchasing power, which will cause direct loss to our farmers and exporting traders. This is a kind of trade war, the sounds of which are beginning to be heard.
Open challenge to BRICS countries
You may remember that the BRICS (Brazil, Russia, India, China, South Africa) countries were thinking of a new currency or some other way to trade among themselves other than the dollar. Trump has given a very strict warning on this. He has said that if these countries try to leave the dollar, America will impose tariffs of up to 100% on their goods.
This means that if we think of doing business in any currency other than the dollar, the doors of America may be almost closed to our goods. Trump’s mantra is the same old “America First”.
What will happen next?
It remains to be seen how tough Trump actually takes action once he takes office in January. But it is certain that the coming days are not going to be easy for global trade. If you invest in the stock market or are in the import-export business, then you Donald Trump tariff policies impact on India We will have to keep a constant eye on such news.
For now, it is important to understand that this is not just a political statement, but a sign of coming economic changes that can directly impact our plates and pockets.
