Trump tariffs points (1/n)
Apparently a lot of chaos abt the trump tariffs. So trying to provide some simple points.
Why tarriff? Seems that it is specifically aimed at China. China has trade surplus of $1 Trillion last year.(I.e. China exported $1T more goods than it imported. ) Out of this, $360B is with US. So Chinese industries are systematically strangulating the US businesses. But not by playing the fair game. China steals US tech big time. Massive gvt subsidies of China gvt .akes the products far cheaper. e.g. typical chinese battery mfg is 20% cheap than US. It is not limited to just cheap goods. There is issue of national security too. It was to be stopped. so this shock.
Why tarriff on other countries too? China is notorious. It ships goods to countries like vietnam & then does few value addition & then ships to US as made in Vietnam product. So if you look closely, countries like vietnam are also punished due to this. There seems a method to this madness.
Is Trump alone doing this tariff chaos? No. China always floods global markets with its cheap goods. In EU, they are shipping cheap EVs. So European car makers are in danger. So EU has put tariffs on China already. How much is that? Hold your breath!. EU already has tariff of upto 35% on chinese EVs. Evry country is trying to protect their industries from China. So is Trump.
How will it impact on India, IT & share markets, will explain in seperate post.
Trump imposed this tariff with aiming not only stop the chinese imports but also increase the local purchases and piggy backoff benefits to the US local companies to manufacture their own products and sky rocket the usa stocks as well the people invest in stocks with ease so US people they simply invest in stock even if they dont work or do business although automatically they earn in the stocks since Local USA companies business will skyrocket due to the umport tariff and ultimately increase in purchaseing the only local USA goods rather than relying on the china,india,UAE etc one shot with numerious other benefits for USA country itself
Keeping in mind that India has huge market potential, If Indian colleges, youth and government have paid attention to innovations, regional production and self sustainability then we could also be like china and the US.
Thanks for explanation
