Trump’s New Tariff Plan Sparks Global Trade Concerns; India Watches Closely

Washington, April 2, 2025 – The US administration has announced new tariffs on countries imposing high duties on American goods, with immediate implementation. A 25% tariff on auto imports will take effect from April 3. The move, part of former President Donald Trump’s aggressive trade policy, has drawn sharp responses from global trade partners.

White House trade advisor Leavitt confirmed that the tariffs would be enforced instantly, while reciprocal tariffs on individual countries would be decided by Trump himself. The administration is refining the tariff strategy to ensure it aligns with US interests.

India’s Cautious Approach
India has opted for a wait-and-watch approach, balancing trade negotiations while closely monitoring tariff developments. Despite Trump’s claims that India will “substantially” reduce tariffs, Indian officials have mapped out multiple scenarios to mitigate economic fallout. New Delhi remains engaged in bilateral trade talks with Washington to safeguard its export sectors.

Global Backlash and Economic Uncertainty
Trump’s latest tariff measures have unsettled US allies and key trade partners. Canada vowed to retaliate with counter-tariffs, with Prime Minister Mark Carney calling the move “unjustified.” Meanwhile, EU Commission President Ursula von der Leyen stated that the bloc prefers a “negotiated solution” but is prepared to defend European industries.

Reports from The Washington Post suggest the administration is considering a 20% across-the-board tariff, which could generate $6 trillion in revenue. The Wall Street Journal also hinted at scaled-down tariffs for select countries.

With global trade tensions mounting, the coming weeks will be crucial as nations determine their responses to Trump’s aggressive tariff strategy.

By Rajeev Sharma

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