Impact of Trump's tariff bomb
09-Aug-2025 01:11 PM
US President Donald Trump is considered less of a politician and more of a business minded person. America is a global power but the President is facing tremendous difficulties in maintaining its supremacy because its policies have rapidly polarized other powerful countries at the global level.
It seems that as fast as Trump is trying to take America forward, its rival countries are also coming together at the same pace. This includes India, China and Russia, Brazil and South Africa i.e. the member countries of the BRICS organization, as well as many other countries of Asia, Europe and Latin America. In fact, Trump is facing heavy opposition on many fronts at the same time.
The tariff (customs duty) bomb that Donald Trump has resorted to to put pressure on his rival countries is likely to cause more harm to the common people of America. In fact, many products / goods are not produced or produced in negligible quantities in America and hence it has to import them in huge quantities from abroad.
The rate of customs duty on it is kept low so that its availability to the common people at a cheap price can be ensured. This policy has proved beneficial for America so far as it has helped in controlling inflation there.
But Trump's thinking is different from this. He is not much concerned about the interests of his people but is obsessed with ensuring maximum earnings for America.
America has increased the rate of import duty on more than five dozen countries of the world. This also includes India and Brazil on which it has been decided to impose a tariff of 50-50 percent.
Allegedly, India has been asked to pay more duty because it buys cheap mineral oil from Russia and sells the remaining part after its use in the global market at a higher price.
This is also increasing Russia's prosperity and it is becoming more aggressive against Ukraine. But the reality is that India is not accepting America's conditions in bilateral trade talks. America wants India to completely open its market for its GM corn and soybean but India is not ready for this.
Similarly, India is not agreeing to give exemption in import duty on American dairy products. India's vocal opposition against America is a clear proof of its increasing power and status. Trump's policies have provided an opportunity to India, Russia and China to come together, whose mobilization may prove to be costly for America.