United States President Donald Trump's latest tariffs target imports from China, Mexico and Canada, but notably exclude India. Trump imposed 25 per cent tariffs on Mexico and Canada, while it was at 10 per cent on China.
The Republican president said that the tariffs were imposed in order to protect Americans and on the grounds of a "high trade deficit".
China contributes the highest at 30.2 per cent of America's overall trade deficit. While Mexico at 19 per cent and Canada at 14 per cent. These countries remain the top contributors to the US trade deficit.
Meanwhile, India contributes only 3.2 per cent of America's overall trade deficit. India is the ninth-highest contributor to the US trade deficit.
During a press briefing, Trump said that Mexico, China and Canada have big deficits. "In one case, they're sending massive amounts of fentanyl, killing hundreds of thousands of people a year with fentanyl...We have about a $200 billion deficit with Canada...and a $250 billion trade deficit with Mexico," said Trump.
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Mexican President Claudia Sheinbaum slammed the US president’s remarks. “We categorically reject the White House's slander that the Mexican government has alliances with criminal organisations, as well as any intention of meddling in our territory," she said.
In 2018, the Trump administration imposed higher tariffs on aluminium and steel, which led to retaliatory action by the affected nations including India.
Experts believe that the trade policies under Trump could result in a potential economic boom for India.
The Economic Survey released on Friday stated that India's import tariff policy has evolved over time, balancing domestic policy goals with the need to integrate into the global economy, reported The Indian Express.
Responding to the US’s latest imposition of tariffs, Canadian Prime Minister Justin Trudeau warned of economic pain and encouraged Canadians to "choose Canadian products and services rather than American ones."