Key Points:
- President Trump has imposed sweeping, sharply increased tariffs on dozens of countries, including a 25% rate on India, as part of his new “reciprocal” tariff policy.
- Select countries such as Mexico, South Korea, and some EU nations avoided the steepest rates through new trade deals, while others including India, Brazil, Canada, China, and Switzerland face high duties.
- Trump claims these tariffs are generating record revenues over $124 billion so far this year and vows to use the funds to pay down the US’s $36 trillion national debt.
- Critics worldwide accuse Trump of fueling trade tensions and global uncertainty, but Trump insists the policy is about fairness, mutual respect, and protecting American jobs.
- Trump says his strategy was shaped before his presidency but delayed by the COVID-19 pandemic; he claims a similar approach to China during his first term.
New Delhi: President Donald Trump has stunned global markets with his latest round of aggressive tariffs, placing new duties on a vast array of imports from dozens of countries. India, singled out for its continued imports of Russian oil, now faces a 25% tariff on its goods sold to the United States an unprecedented move for two of the world’s largest democracies. Others hit hard include Canada (35%), Switzerland (39%), Brazil (up to 50%), and China (30%).
Deals, Delays, and Exemptions
While some US allies like Mexico and South Korea managed to cut deals for lower rates or special exemptions, most affected countries braced for the impact as the new tariffs took effect on August 7. The European Union as a bloc agreed to a new 15% base rate, with individual states facing additional tailored measures.
Trump’s Justification: “It’s Raining Money”
Facing global backlash, Trump doubled down on his tariff blitz during a press event, stating:
“We are collecting more money from tariffs than ever before. It’s raining money billions and billions! And now, it’s time to pay down America’s debt. We should have done this years ago.”
The US Treasury department confirms that over $124 billion in additional tariff revenues flowed into federal coffers this year more than double last year’s haul. Some estimates project up to $300 billion in total revenue by the end of 2025 if the current policy holds. Trump has even floated issuing rebate checks to Americans, using the surplus tariff revenue to help consumers stomach higher prices.
Tariffs as Debt Solution
President Trump portrays tariffs as a key weapon in tackling America’s $36 trillion national debt. He likened them to the economic strategies of the late 1800s, claiming, “Tariffs alone created the greatest wealth for our country. We should be using them to reduce debt now”.
Global Criticism Mounts
World leaders and economists have blasted Trump’s tactic, warning of higher prices, potential job losses, and rising tensions across global supply chains. Some countries, such as Switzerland and Canada, are scrambling to negotiate new terms to avoid the full brunt of the tariffs.
Fairness and “America First”
Trump insists that his policy is about reciprocal treatment and “fairness” in global markets:
“Wherever there is unfair treatment for US goods, there will be tariffs. I want fairness, and hundreds of billions will now come into the US.”
He claims the policy was delayed during his first term because of the focus required by the COVID-19 pandemic, but is now being rolled out worldwide at full scale.
President Trump’s new global tariffs mark a seismic shift in US trade policy, targeting India and dozens of other nations with new duties. While the tariffs are earning record revenue and are pitched as a solution to America’s towering debt, critics warn of long-term economic fallout and fraying global alliances.
