US President Donald Trump announced to increase customs duty on steel and aluminum products from 25 percent to 50 percent for Canada. This is expected to make the trade war between the two neighboring countries become more intense. Trump said that this decision to increase the tariff will be implemented. He said that the increase in tariffs is a reaction to Canada’s move to increase the price of power sold by the provincial government to the US. The US President said in a post on social media platform ‘Truth Social’ that I have directed my Commerce Minister to impose 25 percent additional fees on all steel and aluminum products coming from Canada to America. It is one of the most tariff countries in the world.
Fear of recession worldwide
Since taking oath as President in January, Trump has been continuously talking about increasing customs duty on imports from China, Canada and Mexico. Along with this, he has also announced to impose counter customs duty on many countries including India. These announcements are increasing the possibility of recession in the economy worldwide including the United States.
Big decline in US stock market
As soon as Trump’s social media posts surfaced, the US stock market saw an immediate decline. After his heavy selling in the stock market due to his threats to intensify the tariff war, Trump is under pressure to show that he has a valid plan to promote the economy rather than pushing it towards recession. However, since becoming President again, Trump has tried to assure the public that due to his tariff decisions, more companies will begin the years old process of transferring their factories to the United States.
Announcement of tariff on India and China from April 2
US President Donald Trump has announced a tariff on India and China from 2 April. In February, President Trump said that his administration would “soon” retaliate on countries like India and China, he also made this statement during Prime Minister Narendra Modi’s visit to America last month. Trump has made it clear to Prime Minister Modi that India will not be able to escape from the US counter -tariff and said that no one can argue with them on the tariff structure.
