KEY POINTS
- Donald Trump has increased tariffs on Chinese goods to 125%, effective immediately
- Trump said China has been unfair in trade and exploited the U.S. for too long
- 75 countries, including India, are in trade talks with the U.S
The trade fight between the United States and China has gotten worse. On Wednesday, U.S. President Donald Trump said that the U.S. would now charge a 125% tariff (a tax on imported goods) on products from China. This happened after China raised its tariffs on U.S. goods from 34% to 84% starting April 10.
President Trump shared the news on his social media account, saying China has not treated global markets fairly and has taken advantage of the U.S. for too long. He said this high tariff would take effect immediately.
At the same time, Trump announced that 75 countries, including India, are in talks with the U.S. about trade issues like tariffs and currency rules. Because these countries have not taken any harsh steps against the U.S., Trump has decided to give them a 90-day pause on tariff increases. During this time, the U.S. will only charge a lower 10% tariff on their goods.
This whole situation started when the U.S. first raised tariffs on Chinese goods to 104%, and then threatened to add 50% more, which made China respond by raising its own tariffs to 84%. Now, both the countries are charging much higher taxes on each other’s products, which could affect global trade and prices.
Last week, US President Donald Trump announced a set of steep “reciprocal tariffs,” hitting China with a massive 54% duty on electronic goods, including iPhones. India, too, wasn’t spared, facing a 26% tariff. Though lower than China and Vietnam (46%), the impact on Indian electronics exports has raised serious concerns.
India’s electronics industry, which has grown rapidly over the past few years, sees the tariff as a short-term hurdle but also a long-term opportunity. With the US being India’s largest export partner, the 26% tariff could affect shipment volumes and supply chains, but India is still in a much better position compared to China.
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