Trump’s New Global Tariffs Take Effect: India Faces 26% Levy, China Hit with 104%

Washington : Donald Trump’s newly announced tariff regime came into full effect just after midnight on Wednesday, shaking up global trade with increased levies on dozens of nations. The former U.S. President had announced retaliatory tariffs on April 2, declaring a minimum 10% baseline tariff on almost all trade partners, including close allies and emerging economies. The move marks a major shift in U.S. trade policy as Trump doubles down on his “America First” economic agenda ahead of the presidential elections.

While the 10% base tariff was already enforced last Saturday, a broader and more aggressive list of elevated duties has now come into effect. Under this new regime, India faces a 26% import tariff, significantly increasing the cost of Indian exports to the U.S. This is expected to affect a wide range of goods, from textiles to pharmaceuticals.

However, the most drastic measure is the combined 104% tariff levied on China. Trump has accused China of engaging in unfair trade practices and undercutting American manufacturers. The massive hike is seen as a direct effort to reduce the U.S. trade deficit with China and compel American companies to relocate production back to U.S. soil.

Several other nations have also been hit with substantial import duties. Smaller economies with minimal trade volumes with the U.S., such as Lesotho, have been slapped with tariffs as high as 50%. Madagascar now faces a 47% tariff, Vietnam 46%, Taiwan 32%, South Korea 25%, Japan 24%, and the European Union 20%.

Trump defended his decision by stating that the U.S. has been at a disadvantage for too long, facing steep tariffs from other countries while offering low or no tariffs in return. The new policy, he argued, aims to balance this disparity and encourage fairer trade practices worldwide.

Critics warn that these sweeping tariffs could backfire, leading to inflation and retaliatory measures from affected countries. They also express concern about rising costs for American businesses and consumers who rely on imported goods. Meanwhile, economists are closely watching global market reactions as countries recalibrate their trade strategies in response to the new U.S. tariff structure.

As the dust settles, the full economic and diplomatic fallout of Trump’s aggressive trade policy is yet to be seen, but it has already triggered widespread concern among global stakeholders.