US President Donald Trump has introduced a new proposal to impose tariffs on furniture imports. He said that the investigation will be completed in the coming 50 days and after that it will be decided how much a fee should be imposed on the furniture coming in America from other countries. Trump believes that this step will strengthen the American industry and bring production inside the country.

Why does Trump want to put tariff on furniture imports?

Trump in his statement especially mentioned states like North Carolina, South Carolina and Michigan. These states were once large centers in the furniture industry, but due to cheap labor and low production costs, most companies took their work abroad. Trump says that the new tariffs will be forced to produce companies again in America.

Trump’s announcement impact on the stock market

The impact of this announcement was directly seen in the US stock market. Shares of major furniture and home goods companies such as Wayfair, RH and Williams-Sonoma declined. While American manufacturing company like La-Z-Boy, which makes most of the furniture in America, increased its shares. Analysts believe that if the tariff is applied, foreign products will become expensive and domestic companies will get benefit.

Trump administration is investigating

The US Department of Commerce is currently investigating. This investigation is being done under Section 232 of the Trade Extension Act, 1962. This law allows the US government to impose tariffs on such products which are considered necessary for national security. However, it is not clear whether this tariff will be in addition to the current duty or will replace it.

Furniture industry used to provide employment to 12 lakh people in US

There was a time when America’s furniture industry was very strong. In 1979, about 1.2 million people used to work in this industry. By 2023, this number has come down to just 3.4 lakhs. The main reason for this decline is considered cheap production abroad and large -scale outsourcing. Trump says that the new tariff will not only promote the American industry but will also return employment for thousands of people.

Will Trump’s announcement be affected by India?

The proposal to impose tariffs on furniture imports is part of the widespread strategy of the Trump administration. The government is already considering putting tariffs on other products as well. These include copper, semiconductor and pharmaceuticals. The goal of this strategy is to promote domestic production, reduce foreign dependence and reinforce industry and employment in the US. Let us know that this announcement of Trump is also going to affect India because India also exports a large amount of furniture in America.

Share Market: The trust of investors over the US economy has been shaken after US President Donald Trump criticized Federal Reserve Chairman Jerome Pavel. Due to this, there has been a huge decline in American stocks and dollars. The benchmark S&P 500 index declined by 2.36 percent on Monday, which is the biggest decline ever this year.

Dollar reached three -year low

Meanwhile, the Tech-Havi Nasdaq Composite Index also recorded a decline of 2.55 %. With this, this index has slipped from its position about 18 percent from the beginning of this year. On Monday, the dollar reached its three -year lowest level. It fell by 97.92 as compared to major foreign currencies like Euro, Yen, Frank. Government bonds also declined on Monday as investors started selling assets commonly considered safe. The reward of 10-year-old bonds in America is rising to 4.4 percent.

Sluggish in Asian market too

The Asian market also started with lethargy on Tuesday. In the beginning of trading in Japan’s Nikkei 225, Hong Kong’s Hong Seng Index and Taiwan’s Taiiex index, there was a decline of 0.8 percent, 0.6 percent and 0.5 percent respectively. Trump is furious at Pavel, the chairman of the Fed Reserve for refusing to cut interest rates. On his social media handle, he has called Pavel as ‘Major Loser’ and ‘MR Too Late’. He has also threatened to remove Pavel from the post. Now he is considering the ways of legally removed to them.

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Global Market Crash: On Monday, markets from all over the world fell in such a way that it will merge directly into the Hades. The tremendous tariff and China’s sharp retaliation by US President Donald Trump shook the stock market of the whole world. China has announced a tax of 34 percent on all the goods coming from the US, which will be applicable from April 10. Its effect was so tremendous that in just two days, a market value of 9 trillion dollars has flew up worldwide.

The worst day of markets in America

The US stock market saw a historic decline on Friday. 6 percent in S&P 500, 5.5 percent in Dow Jones and 5.8 percent in NASDAQ. On Monday, the futures were going down even more. US crude oil prices fell below $ 60 per barrel and the dollar value fell to 145.98 yen.

India is also not left, Sensex-Nifty collapsed

There was chaos in the stock market in India on Monday. The Sensex fell by 2,227 points to close at 73,137.90, while the Nifty fell 743 points to 22,161.60. In the day -long trading, both index had broken up to about 5 per cent, although in the end there was some recovery. Legendary stocks like Tata Steel (-7.78 per cent), L&T (-5.88 per cent), Tata Motors (-5.56 per cent) were beaten badly. The technology sector, which is more dependent on the US, broke up to 7 per cent, and the mid and small cap declined by 4-6 per cent.

Outcry in foreign markets

Japan’s Nikkei 225 fell 7.1 percent, which was the biggest decline of the last several years.

South Korea’s KOSPI fell 5.5 per cent and had to install circuit breakers.

Taiwan’s market fell 9.8 percent, which had to ban short selling.

The market lost 8.5 percent as soon as the market opened in Singapore.

Australia’s ASX 200 fell 6.3 per cent to a 15 -month low.

Saudi Arabia and Gulf Markets also

The Saudi stock market saw a decline of 6.78 percent. The largest after the Kovid period. Aramco’s shares fell 6.2 per cent, causing a loss of $ 133 billion in the company’s market value.

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