'They ripped us off': Trump vows to impose reciprocal tariffs on April 2 amid trade tensions

Donald Trump revealed a dramatic policy change regarding trade policy, which states that he is prepared to retaliate on tariffs to every country, and not to merely a narrow selection of 10 to 15 nations that post the highest trade deficits. It is a massive escalation of the Trump trade war strategy. Trump sees tariffs as a tool of protecting the home economy from unfair foreign competition and as a negotiating lever for better terms for the US. Trade war concerns are, however, frightening the markets and inciting recession fears in the US.

A 'Liberation Day' for the US Economy?

Trump has branded April 2 as "Liberation Day," and he promised to make further tariff announcements on automobiles, cars, chips, and others. He is convinced that the action will bring back some of the money that has been drained from the US.

India's Concerns: Potential Impact on Exporter

Indian exporters and industries are appealing to the government to protect them from the US's retaliatory tariffs, seeking exemptions since such tariffs would seriously affect them. The US is India's biggest trading partner, and any tariff imposed would have serious implications.

A complex web of trade relations

The US has already introduced tariffs on aluminum, steel, and autos, and additional tariffs on all products imported from China. Trump threatened to impose a package of tit-for-tat tariffs on countries imposing levies on US exports, promising to retaliate in the same measure against these nations.