Donald Trump's "America First Trade Policy"
Upon taking office as the 47th President of the United States, Donald Trump announced his "America First Trade Policy." The primary focus of this policy is to address what he perceives as "unfair and unbalanced trade" through various measures, including tariffs.
Key Components of the Policy
- Global Supplemental Tariffs: Proposed imposing supplemental tariffs globally as a remedy for trade imbalances.
- Tariffs on BRICS Nations: A potential 100% tariff on BRICS countries, including India, if they reduce reliance on the US dollar for trade.
- Flat 10% Tariff Proposal: During his campaign, Trump suggested a 10% tariff on all imports, irrespective of their origin.
- Review of Trade Agreements: The administration plans to review existing trade agreements and address currency manipulation.
- External Revenue Service (ERS): Establishment of an ERS to manage tariffs, duties, and foreign-related revenues.
Immediate Tariff Actions
- Targeting Mexico and Canada: A 25% tariff on imports from these countries is set to begin from February 1.
- Potential Impact on India: While India hasn't been directly targeted, US policy changes are being closely monitored. India has been labeled a "tariff king" by Trump due to its trade surplus with the US.
China and BRICS Nations
- China: Despite Trump's earlier mention of a 10% tariff on China, no increased tariffs were announced. The US intends to review its trade agreement with China.
- BRICS Warning: Trump warned the BRICS bloc of a 100% tariff if they attempt to replace the US dollar in trade.