Reciprocal tariffs: Ex-RBI governor Raghuram Rajan calls Trump’s tariffs a ‘self goal’ 

Former RBI governor Rajan has criticized the decision of the administration to impose mutual tariffs of about 60 countries, which describes the “self-employed wound.” He noted that before that, the step would damage the US economy, its impact on India will be limited.

On Thursday morning, US President Donald Trump announced that new advertising duties began from 10% to 50% of all commercial partners. The initial 10% tariff is scheduled for April 5, followed by 27% duty.

Ryan stressed that the immediate consequence of these tariffs would be detrimental to the US economy, calling it a confident step. He also noted that tariffs will lead to higher prices for US consumers, reducing their demand and eventually affecting Indian growth.

Rajan in an interview with PTI news agency.

According to Rianhan, Tariffs are expected to increase prices for US consumers, which, in turn, can reduce their demand and can slow down the export of India. However, since the United States has set tariffs on other countries, the impact on India cannot be so heavy.

He explained that the overall influence of India’s tariffs could not be as important as they were only targeted in India, as they are unable to pass small producers.

“Of course, as far as the United States has applied tariffs on other countries, and India competes with producers of those countries, the total effect is smaller, as the tariffs are smaller.

Rajan explained the ultimate goal of Trump is to increase domestic production in the United States. However, even if this initiative proves successful, it will most likely take significant time to implement.

At the same time, the decline in India’s export can lead to excess of goods within the domestic market, it is possible to reduce tariffs. In addition, China can strive to turn to India due to restrictions on access to the US market.

Advantage of India.

To the question whether India can capitalize the current crisis, Rajjan highlighted the possible advantages of reducing tariffs, regardless of the impact of negotiations with the United States.

He stressed the importance of adapting to the most protective global trade environment and suggested studying trade opportunities with regions such as Asian, Japan, Africa and Europe. Rajan also stressed the need to strengthen relations within the framework of SAARC and to overcome political disagreements in the world of relevant regional commercial blocks to ensure South Asia.

Mutual tariffs:

President Trump carried out 26% of India’s mutual tariff, citing the country’s high debt on other hindrements of motorcycles and trade.
Trump has accused India of manipulation and trade restrictions, noting that the new tariff is a necessary counterattack.

Different countries, including China (34%), Vietnam (46%), India (26% corrected by 27%) because of the EU (20%), the monetary practice of their trade.

President Tramper has used the economic powers of the international emergency, pointing to the US dollar’s $ 918 billion trading deficit to justify its aggressive protection policy.

Trump has published light tariffs, citing concerns of other countries.
Trump claims that these tariffs will help bring back factory jobs, but can lead to rising prices.
Moreover, additional charges have been applied to the auto-building, as well as steel, aluminum and oil from Venezuela.

The comprehensive list of mutual tariffs revealed by President Trump.

China – 34%
EUROMIA. 20%
South Korea. 25%
India. 26% (27% corrected later)
Vietnam. 46%
Taiwan. 32%
Japan. 24%
Thailand. 36%
Switzerland, 31%
Indonesia. 32%
Malaysia. 24%
Cambodia, 49%
United Kingdom: 10%
South Africa. 30%
Brazil. 10%
Bangladesh. 37%
Singapore: 10%
Israel. 17%
Philippines. 17%
Chile, 10%
Australia. 10%
Pakistan. 29%
Turkey. 10%
Sri Lanka. 44%
Colombia. 10%