Sanjeev Ahluwalia | Trump’s DOGE and hidden costs of ‘reciprocal tariffs’
3 weeks, 3 days ago

Sanjeev Ahluwalia | Trump’s DOGE and hidden costs of ‘reciprocal tariffs’

Deccan Chronicle  

It is a measure of the randomness of the policy changes in the United States that the left hand no longer knows what the right is doing, or more appropriately, neither of its two right hands know what the other is up to. The problem is that even as Mr Musk sculpts the US government to shed generational lard, the White House is doing exactly the opposite by remaking the foreign trade rules which could take away billions of dollars from consumers and businesses in the US and in exporting countries as US import tariffs increase. More significantly, such a move would deindustrialise much of the world, as hyper-competitive Chinese manufactures -- some subsidised by the State -- would flood global markets, pushing China’s economy to the levels of economic dominance enjoyed by the United States after the Second World War, when it had a share of 28 per cent in global GDP, the next biggest was the UK with a share of 6.5 per cent. Each change in import tariff across all countries exporting to the US, for every specific product or product group, would need to be constantly monitored and protocols developed for updating RT. The US would retaliate by a reciprocal ban, which would be infructuous since India exports no big motorcycles or trucks to the US.

History of this topic

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