PRESIDENT Donald Trump is keeping the pot boiling with daily major announcements. Globally, the trade front changes are creating turmoil and uncertainty among nations and financial markets. ‘Are they on or off?’ - Nations are left guessing. Should they retaliate or wait? If they retaliate, Trump promises to increase the tariffs further and if they wait, it would look like Trump has cowed them down. Indian officials are keeping quiet but have lowered tariffs on goods of interest to the USA.
In the State of Union Address to the joint houses of the US Congress, Trump spelt out his strategy. He declared that there will be reciprocal tariffs on all – friends or foes. He twice mentioned India which he has characterized as ‘tariff king’. In the address he said, “Whatever they tariff us, other countries, we will tariff them”. He added, “That’s reciprocal, back and forth.” and, “Other countries have used tariffs against us for decades, and now it’s our turn to start using them against those other countries”.
‘Tariff’, he said, was “a beautiful word”.
