Trade Tariffs - Complications and impacts.

In the beginning of the year 2025 , within few weeks after owning White House charge President Trump pushed global trade tension by imposing a series of aggressive tariffs slabs. It works as significant turn in USA trade policy with some shells. The main strategy was the imposition of 10% tariff on all imports from other countries but it targeted dislike/ unwanted/ non Allies countries like 25% on Canada , 49% on Vietnam, 46% on Philippines, 29% on Pakistan and 145% on Chinese products. This liberation day tariffs made reciprocal impact on both sides. Friendly/ allies and under influence countries got 10% tariffs and remaining have different criteria to reach in US market.

The immediate economic ramifications were profound as major stocks markets dumped like Nasdaq 5% , Dow Jones 4% and s&p 5%. Key sectors of technology and automotive suffer huge lose in February and March. Apple and Tesla got sharp decline as well.

Locally the tariffs were aimed to boost the industry, making imported items expensive and reduce the trade deficit which touching to 2 trillion dollars. But a big argument raised that it will increase the production cost due to costly imported goods and raw materials. This can lead in slow productions, lose of jobs and affection in supply chain.

World-wide base these tariffs will strains diplomatic ties & relationships especially with Allies of NATO , Gulf countries. China, a big rival, retaliation with its own tariffs on U.S products somewhere 80%. Also suspension of U.S. Lumber imports, revoke soybean and stopped apple chips. New allies and groups forming as China did deal with European union for less mutual tariff scheme. All these intentions will slow down the international economic growth and will increase the risk of border trade war.

While the Trump administration maintained that these tariffs were essential for corrections of imbalances to revitalizing the local industry. The broader economic indicators suggesting a complexity and detrimental impact. Volatility in market, increased consumer prices and shaking international strains relationship may challenge to sustainability of global trade. But a surprised element seen that President Trump and his cabinet are satisfied over these actions and they are defending it with strong believe in it. Even President Trump is happy and openly saying in media that countries/ kings are begging for some deals to him and ready to do anything even ready to kiss his axxx for it. I personally believe that it is not a diplomatic language nor a good way to address countries but everything expected from Mr. Trump.

Conclusion:
President Trump's 2025 tariffs strategy sought to address long standing trade concerns but international diplomatic and economic complications are threats as well. The new blocks are emerging in Europe and Africa against these tariffs to grow collaboration among these countries. But The aftershocks of these tariffs will be in concerns for may be years after.

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Amjad
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