India-US Tariff War / In an attempt to subdue the world, Trump is digging the grave of his own country!

India-US Tariff War: US President Donald Trump's new tariff policy has caused a stir in the global economy. These massive tariffs, which will come into effect from August 7, 2025, have affected everyone, from developed countries like India, Canada, UK, Japan to developing countries like Laos and Algeria. This policy is not only shaking global trade, but is also having a profound impact on America's own markets and consumers.

Game of threats instead of rules

After becoming president again, Trump has almost demolished the global economic system. Now the US trade policy has become based on the personal will of the President instead of rules. Trump is pressuring those countries that do not agree to his conditions, and extracting concessions from those who agree.

According to former US trade official and Deputy Director General of the World Trade Organization (WTO) Alan Wolfe, "Trump played the gamble of bringing countries to the negotiating table by threatening, and he has also succeeded in it." This series started on April 2, 2025, which is being called Trump's 'Liberation Day'. On this day, he announced reciprocal tariffs of up to 50% on countries with trade deficits and a 10% baseline tax on other countries.

Trump declared the trade deficit a national emergency, citing an old US law of 1977, which gave him the right to directly tax imports. The move marginalized the US Congress, and now this policy is facing challenge in US courts.

Developing and developed countries hit hard

Trump's tariff policy has hit countries whose economies are already weak. For example, Laos, where the annual per capita income is only $2100, has been imposed a 40% import tax. Algeria, where the per capita income is $5600, has been imposed a 30% tax. On the other hand, the US per capita income is around $75,000.

Developed countries are also not untouched by this policy. A 35% tariff was imposed on Canada because it indicated recognition of Palestine. A 50% tax was imposed on Brazil because Trump did not like the policies of former Brazilian President Bolsonaro. It is clear that tariffs are no longer just a trade policy, but have become a diplomatic weapon.

No relief even for allies

Even the countries that have accepted Trump's conditions have not received any special relief. For example, Britain will now have to pay 10% tax to sell goods in the US, which was only 1.3% earlier. The European Union and Japan have accepted the condition of 15% tax, which is less than Trump's original threat, but still quite high. Countries like Pakistan, South Korea, Vietnam, Indonesia and the Philippines have also reached an agreement with Trump, but they have to pay more tax than before.

Increasing burden on American consumers

The impact of tariffs is not limited to global trade; it is also directly affecting American consumers. Everyday goods like sneakers, TVs, electronics, bags and video games are now more expensive than ever, as most of them are manufactured outside the US.

Experts at Yale University estimate that this policy is costing the average American family an additional $2,400 annually. The average import tax in the US was 2.5% in 2018, which is set to rise to 18.3% by 2025—the highest level since 1934.

Alan Wolfe says, "American consumers are the biggest victims of this policy. They are now paying extra tax on every purchase."

Experts warn: No winners

Barry Appleton, co-director of the Center for International Law at New York Law School, believes that "there will probably be no winners in this policy. Most countries will suffer, and the US will not be untouched by this."

This policy is not only affecting global trade, but is also having an adverse effect on America's own economy. Rising prices and supply chain disruptions are putting pressure on American consumers and businesses.