Donald Trump’s global tariffs take effect
The so-called reciprocal tariffs imposed by the United States on several countries took effect on Wednesday.
India’s benchmark stock indices fell about 0.4% as trading began on Wednesday morning. The Sensex had fallen by about 200 points as of 9.45 am. The Nifty 50 had dipped about 82 points.
Washington imposed “reciprocal” tariffs on dozens of countries, including a 26% “discounted” levy on India. The new tariffs were announced by US President Donald Trump on April 2.
Trump also announced a 10% minimum tariff on most goods imported into the country, which took effect on Saturday. The US government imposed a 25% tariff on all foreign-made automobiles, which took effect on April 3.
Trump had repeatedly said he intended to impose a reciprocal tax on India, among others, citing high tariffs the countries impose on foreign goods. He has already imposed tariffs on a range of products from Canada, Mexico and China.
The tariffs have led to concerns of a broader trade war that could disrupt the global economy and trigger recession.
A day after the tariffs plan was announced, New York-based financial services firm JPMorgan revised its odds for a global recession by the end of 2025 from 40% to 60%. Financial services firm Goldman Sachs has raised the probability of a recession in the US to 45% in the next 12 months from the...
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