Trump’s Reciprocal Tariffs Cast Shadow Over PM Modi’s Washington Visit
1 month, 2 weeks ago

Trump’s Reciprocal Tariffs Cast Shadow Over PM Modi’s Washington Visit

The Quint  

The recent Narendra Modi-Donald Trump meeting in Washington was overshadowed by the US President, who, just hours before, upended global trading arrangements in favour of the US, by establishing the principle of reciprocity as the foundation of trade relationships. Based on the America First Trade Policy Memorandum, which was signed by Trump on his first day back in office on 20 January, the US is preparing a “fair and reciprocal plan” to counter non-reciprocal trading arrangements by determining the equivalent of a reciprocal tariff with respect to each foreign trading partner. Unfair, discriminatory, or extraterritorial taxes imposed on US businesses, workers, and consumers, costs from non-tariff barriers or measures, and unfair or harmful acts, policies, or practices — including subsidies and burdensome regulatory requirements on American businesses operating in other countries — are all targeted. Further, practices that cause exchange rates to deviate from their market value, wage suppression, and other mercantilist policies have been singled out.

History of this topic

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