Bikaner20 minutes ago
- copy link
Many products sold in the American market come from other countries. The new President Donald Trump has announced to increase taxes on most imported products. He has threatened to impose maximum import duty up to 100% on BRICS (Brazil, Russia, India, China, South Africa). This may increase inflation in America.
In fact, in America, sneakers, T-shirts, most of the medicines, jewelry, beer and other household items come from countries like BRICS countries, Mexico and Canada. However, according to the announcement of the Trump administration, there will not be a uniform increase in duty on import of all types of products and services from all countries. Trump has talked about increasing tariffs from 10% to 100%. Although in some reports it has been described as a mere threat, but Trump has denied such reports. He has clearly said that he could have reduced the proposed rates of tariff.
American companies are making strategies to deal with the situation
Ali Furman, consumer markets leader at PwC, said tariffs have now become the main topic of discussion among companies. However, Trump’s policies are not completely clear yet. But companies have started preparations to deal with every kind of situation. This includes the strategy of increasing sales after increasing prices.
Trump’s tariff policy impacts every American family and business
Columbia Business School professor Brett House said that prices of almost every consumer product could increase. Tariffs on petroleum imported from Canada could make everything more expensive in the US. The impact of tariffs could be widespread. It can affect every home and business.
33% Americans in favor of 60% tax on China
The survey report also says that 45 percent of Americans support 10 percent tariff. Nearly one-third of Americans are ready for a 20 percent import duty. But almost the same number of Americans are in favor of imposing 60% tariff on the import of Chinese products. This means that there is a special bitterness among Americans about China. Trump can take advantage of this public sentiment.
American companies will pass the burden of inflation on customers
Trump believes that tariffs will increase manufacturing and employment in America. But this will increase costs for retail companies, which they can pass on to customers. The National Retail Federation and Consumer Technology Association have warned that the tariffs will ultimately increase costs for American businesses and consumers.
67% Americans worried about rising inflation
67% of Americans surveyed by PwC believe that companies will pass the burden of increased tariffs on to customers. Prices of avocados, children’s toys, chocolates, clothes, jewelery and cars can increase up to one and a half times. In such a situation, there is less possibility that Trump will suddenly take any major decision.
Indian IT companies are increasing the hiring of Americans
Indian IT companies were already aware of the increase in tariffs in America and the difficult situation for professionals from other countries. That is why they have appointed more local employees in America itself. According to regulatory filings, companies like Infosys and TCS have accelerated American hiring. Both these companies have appointed more than 25 thousand American staff. According to NASSCOM, the representative body of IT companies in India, as American policies change, Indian IT companies will have to be prepared for changes in the health care service, retail and banking sectors. More than one-third of their income comes from these sectors. However, in recent years, Indian IT companies have increased their focus on new markets other than America. African and regional markets are included in these.
One third of Americans are in favor of higher tariffs on products imported from China, Trump can take advantage of this