As soon as Donald Trump took office as the President of the United States, he began imposing tariffs across various nations, sparking a global trade war. This extended to countries like China, Mexico, Canada, and even India. In retaliation, these nations, including China, have declared tariffs on American goods.
Trump's tariffs have faced significant opposition within the United States, drawing criticism from political corridors to prominent figures. The renowned American investor Warren Buffett has dubbed Trump's tariff as a form of warfare. Let's explore how these actions have impacted America in five significant ways.
Point One: Dollar Depreciation
The once robust U.S. Dollar has begun a downward trajectory amid Trump's tariff war. On March 5, the Dollar Index, which tracks the dollar against six major currencies, fell to 105.7. Experts link this decline to economic stagnation and retaliatory tariffs from other nations, which have influenced the dollar negatively. In just a week, the dollar has depreciated by approximately 1.5%.
Source: aajtak
Point Two: Turmoil in U.S. Markets
While Trump lauds the tariffs as catalysts for boosting domestic production and employment, U.S. stock markets reflect otherwise, showing a decreasing trend recently. Reports suggest that concerns about the tariff war's impact on U.S. growth are mounting in the market, alongside fears of inflationary pressures. On the last trading day, the Dow Jones fell by 670 points, S&P by 71.57 points, and Nasdaq closed 65 points lower.
Point Three: Crude Oil Price Drop
Crude oil prices are seeing a notable decline. Internationally, Brent crude prices have slid to $70.85 per barrel, while WTI crude is trading at $67.74 per barrel. Several factors, including U.S. tariffs, contribute to this drop. Reports indicate that Opec+ plans to boost production in April 2025, with Trump encouraging increased crude output. Amid these developments, countries like Canada, Mexico, and China countered U.S. tariffs with protective measures, adding further market uncertainties affecting oil prices.
Source: aajtak
Point Four: Retaliation from China, Mexico, and Canada
Under his tariff policy, Trump targeted China, Mexico, and Canada therewith tariffs aplenty. As of March 4, the U.S. imposed a 25% tariff on imports from Canada and Mexico, with a 20% tariff on Chinese goods. In retaliation, Canada declared a 25% tariff on American products, Mexico announced upcoming decisions, and China levied an additional 10-15% tariff on American imports, effective March 10, banning exports from 25 American companies.
Point Five: U.S. Disarray, India's Resilience
Addressing the U.S. Congress, Trump spotlighted India, claiming unfairly high tariffs. Yet, despite Trump's announcement of tariffs effective from April 2, Indian markets appear unscathed, with Sensex and Nifty thriving in a buoyant market. Global indicators alleviating crudeness and a fallen dollar offset market fears, ushering in prosperity instead of panic.
