US President Donald Trump on Wednesday (local time) announced sweeping ‘discounted’ reciprocal tariffs on several countries, including India, which will be charged 26 per cent of its imports.
Speaking of impact, US companies that import goods will have to pay the new taxes, especially if the White House starts charging them “right away,” spokesperson Karoline Leavitt had suggested on Tuesday. According to a BBC report, higher the taxes, more companies will try to find ways to reduce those costs. They might change suppliers, ask business partners to share the costs, or raise prices for Americans. It’s a risky move because if they raise prices too much, customers might stop buying. This situation increases the possibility of a recession in the US and in other countries.