The first installment of “Reciprocal Tarifs” announced by US President Donald Trump has become effective from midnight on Thursday. New tax (tariff) has been imposed on goods from more than 90 countries. Trump said that now whatever goods will come to America from these countries, it will be taxed more and America will get billions of dollars.
50 percent tax on India
India already had 25% tax on India, but Trump has increased it to 50%. This increased tax will be applicable after 21 days.
The Trump administration says that India is buying oil from Russia, causing the US concern to increase further. Therefore, more tax has been imposed on India.
Tax on other countries
More taxes have been levied on some countries:
Brazil: 50%
Laos, Myanmar: 40%
Switzerland: 39%
Iraq, Serbia: 35%
India: 25% ➜ to 50%
Vietnam, Taiwan: 20%
Sri Lanka, Pakistan, Thailand, Malaysia: about 19%-20%
More than 21 countries have been taxed above 15%.
100% tax on semiconductor (chip)
Trump also said that companies that are not making semiconductor (CHIP) in the US will be charged 100% tax. But companies like Apple will get exemption as they are making factory in America. If a company lies and does not build in America, then it will be added to tax later.
Impact on other countries
Canada: Now he will be levied 35% tax as Trump accused him of not controlling Phentanil drugs. European Union (EU): After some agreement, 15% tax was agreed. Mexico: At present, there will be no tax for 90 days as the conversation continues.
What is Trump’s purpose?
Trump wants American companies to make goods in the US itself. They believe that other countries are taking advantage of America. That is why they want to punish them by imposing more taxes on these countries and want to strengthen America’s economy.
