North India Statesman
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Washington: As soon as Donald Trump became the President of America, he threatened to increase the import tax on various goods coming to America from other countries to 100 percent, this threat was given to BRICS countries like India, China. , South Africa, Brazil and Russia. Now that Trump is in power, he can implement this tax anytime. Due to which inflation in America can have a huge impact. Because American citizens are dependent on foreign goods. If Trump drastically increases import taxes, these goods will stop coming to the American market causing American citizens to depend on local manufacturers which could be very expensive. Especially things like medicines, jewellery, beverages, clothes etc. are likely to become quite expensive.
US President Donald Trump claims that increasing tariffs or import taxes on foreign goods will increase domestic production in America and create employment opportunities. However, this decision of Trump will also increase the investment of retail companies. For which the companies will compensate the customers, that is, the companies will have to increase production, the cost of which they will recover from the customers, then things will become expensive. The fear of which has now started troubling the citizens of America. The National Retail Federation and the Consumer Technology Association have also warned Trump on this issue and said that the burden of higher taxes on foreign goods will ultimately fall on American companies or industries and consumers. According to a PwC survey, 67 percent of American citizens are also worried about the same thing. However, the Americans have also supported increasing tariffs on China. At the same time, industries and economic experts across the country are also keeping an eye on Trump’s decision. If Trump really increases the tariffs, what effect will it have on the world and America, economists are presenting. Former Reserve Bank of India Governor Raghuram Rajan said that if the US makes major changes in tariffs overnight, it will create uncertainty in foreign investment. If a universal tariff is implemented, imports into the US from other countries will be blocked, placing a burden on the US and increasing production costs. This decision of Trump will only harm America, because if the production is done in America then the cost will increase but if the same production is done in another country then the cost will reduce. Even countries with large economies like China depend on smaller countries like Vietnam to reduce production costs. Usually the product is transferred to another location, such that many Chinese products are also sold in Vietnam.
Threat of using dollar will drive world away from it: Harvard economist
During the discussion at the World Economic Forum held in Davos, Switzerland, on Trump’s threat to increase tariffs, many economists said that Trump’s threat to increase tariffs to BRICS countries will drive these countries away from the dollar. Kenneth Rogoff, an economics professor at Harvard University, said the US wants to use the dollar because it is stable and has become a means of payment. But if threatened to use only the dollar other countries would move away from the dollar. By doing this, Trump is harming himself.
