Donald Trump Tariff: US President Donald Trump’s tariff deadline is getting closer as on April 2, the confusion within the Trump administration is increasing. Inner discord in making policy and sudden decisions have confused the officials of the White House.
According to the report by Politico, top officials including Vice President JD Wance and Chief of Staff Suzy Wills are also uncertain about what Trump is really going to do. A White House colleague said, “Nobody knows what is happening.”
Sudden change concerns in business sector
The sudden decision taken by Trump administration to impose 25% tariffs on the automobile industry recently is an example of this unpredictable policy-making. This decision was taken so quickly that it affected the other schemes of the White House and left the industry without preparation. Business and investors are worried as Trump also said that if auto companies increase the prices of cars to compensate for tariffs then it does not matter to them.
Concern among global business partners
The purpose of the Trump administration is to implement the recipekall tariff, so that other countries can focus on American exports. However, due to lack of clear information about this policy, international trade partners have to struggle. Some countries have already started measures to reduce the effect. Canada has launched a campaign in 12 American states in which the public is being made aware of the effects of tariffs through billboards and advertisements.
Possible impact on India
Indian automobile industry may also be affected by American tariffs. The 25% tariff policy of Trump administration can become a challenge for Indian automobile manufacturers and auto parts exporters. Analysts estimate that this tariff may cause 125–150 basis points in the operating margin of Indian auto parts companies. However, some experts believe that the total influence on India will be limited, as the US has low the amount of Indian auto exports. Now everyone’s eyes are on whether April 2 will actually be “Liberation Day” or will bring new challenges in global business.
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