US President Donald Trump has imposed tariffs on Canada, Mexico and China. This has posed a danger of starting tariff war in the world. Canada and Mexico have also imposed tariffs on US imports in retaliation. China is also expected to retaliate soon. The US has imposed a 25–25 per cent tariff on Mexico and Canada, while China has imposed 10 per cent tariffs. Due to this tariff, products exported to the US from Canada, Mexico and China will become expensive. The cost of these things in the US market will have a bad effect on their sales.
Stock markets worldwide decline
Trump (Donald TrumpTariff of)Us Tarrif) The impact of planting was seen worldwide on 3 February. There was a sharp decline in American futures. Asian stock markets also saw major weakness. The US dollar index has been strengthened. Crude has bounced. Brent crude crossed 0.8 per cent to cross $ 76 per barrel. This is the highest price of crude in a week. Trump threatened to put tariffs on imports of several countries during the US presidential election campaign.
Sensex 650 points dropped
Trading in the stock market in India started with a major decline. As the sensex opened, more than 650 points fell. Nifty also saw a decline of 220 points. Analysts say that the reason for the decline in Indian stock markets is the decision to impose a tariff. On 1 February, Finance Minister Nirmala Sitharaman presented the union budget. In this, he had announced to pay tax for taxpayers earning Rs 12 lakh annually. This was expected to speed up the stock market on 3 February i.e. Monday. However, the news coming from America affected the Indian market.
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How much will be affected on India?
The question is, how much will the impact of tariffs on three countries of America and the retaliation of these countries will have an impact on India? Finance Minister Nirmala Sitharaman has answered this question. He said that we do not know how much effect it will have on us. However, this is a big issue. Whatever tariffs have been imposed on Mexico, Canada and China will affect us. It will have an indirect effect on us. It is difficult to say something properly about how much it will affect us. We are cautious about this. We cannot guess how much impact will be on us.