The tariff announcement of the US President all over the world stirred up, the stock market bloodshed, the possibility of great recession was intensified
The beginning is such a Kharmandal or the upheaval, so what is to happen next. According to his promise, US President Donald Trump announced the alleged “Liberation Day” on 2 April 2025, as expected, the world started rolling on the ground, at least the stock markets rolled towards the rapid trough. Trump was desired to do this only on April 1, but fear of being called a “fool”, the announcement was extended one day, but what did, not only the world, people in their own country also came out on the streets and started buzzing in the wind of “Mahamurkh Kharmandali”. There are many speculations that the dream of Trump of Germany origin is to repeat the alleged “national revolution” and “rebirth day” on 30 January 1933 on the day of “Liberation Day” became the Chancellor of “Liberation Day”, the results of which were revealed in the 30s, Holocast, World War. In the same way, the black clouds of the great recession have started moving again and the land is also burning. The war fronts are also standing in Gaza, Ukraine and Iran, it is different that if that round is no longer like war, then it can show even more fatal effects. But first see, what kind of upheaval was created after the announcement after the announcement that Liberation Tariff (which is the most beautiful word in the Trump dictionary).
After the announcement, on Friday 4 April, the stock markets around the world opened, then there was a ruckus in the stock markets around the world on Monday 7 April after the impact of the entire impact. The stock markets of Asian countries began to lick dust from the bumps, about 8 percent of Japan, Hong Kong 13.2 percent, Dalal Street in India was over 4 per cent, European countries saw a decline of nearly 4 per cent (see chart, such a market worldwide). 14.2 lakh crore rupees of India’s investors are said to be destroyed. This condition of them was somewhat due to the filling of America markets. On Monday, Trump’s domestic markets trembled. Within two days, a net worth of 66 trillion dollars was dust in Wall Street. The market capital of Trump’s richest friends burnt (see chart, shock to the rich).
So, many veterans of Wall Street, most of which are Trump’s supporters and have invested a lot in their election, now they have started speaking openly against Trump’s tariff Terror. Billionaire hedge Fund Manager Bill Akkman said that “America has called Hakkampau cold for itself.” Jamie Dimon, CEO of JP Morgan Chase, warned, “It can be a great disaster in the long run.” There is a possibility of a fierce recession wave in America. Inflation can jump unmatched. Well-known economist Prof. Arun Kumar says, “This is the result of Trump’s conservationist Dadagiri. The whole emphasis is that in the neolithic era, the US was left back to the production and service sector in China, Mexico, Canada, to some extent India and other countries, to bring back, so that people will get relief from unemployment and decreasing income. But it is difficult to get relief from wages in the US.”
In fact, the average minimum wage in the US is $ 15 daily, $ 25 in the auto industry, which is not even a month’s wages in countries like India. So, all these decisions will increase inflation, due to decrease in demand and not being able to produce the old scale, there is no possibility of special difference in unemployment. The chairman of the American Fed Reserve said that “high inflation rates are going to remain, so interest rate cuts may soon end.” For this reason, Trump is trying to threaten China the most. Trump said, “If China did not withdraw 34 percent of additional tariffs despite long -time trade violations, then from April 8, 50 percent of its tariffs will be given on every US import and all further conversations will be broken.”
China reacted sharply after Trump’s tariff announcement. His Foreign Minister Wang Yi said, “We will answer this injustice and America will be heavily.” China increased 34 per cent tariff on 5 April. The import from China in America is about 40 percent of the most. Compared to that, India’s exports are around 4 percent.
In fact, this crisis is of the neo-emergent era of capitalism, which never recovered from the recession caused by the 2008 sub-prime crisis. The crisis started in America, which started all over the world. It gave China a chance to spread its production and market scope. Now capitalism wants to come out of the nineties and all the treaties and agreements to overcome that crisis. But is it so easy. Pro. Arun Kumar says, “Trump had earlier said that we would put the tariff as much as we put on us. So, it seemed that it is something understandable. But it is not a recipe or equal tariff, it is an American protectionist policy.”
For example, India’s average tariff was 17 per cent and the US average was 3 per cent, so it should have been applied to 13-14 per cent but 26-27 per cent has been imposed. Similarly, 20 percent was imposed on China earlier, now it has been imposed 34 percent. In response to this, China has imposed the same amount, then Trump is bifurcated. Similarly, Vietnam was put 40 percent while there was not so much difference. So, this is a matter of giving protection to the US market directly. It is true that America’s economy is the largest. The world has a scope of about 1600 trillion dollars in the world and the service sector and the US holds 27 per cent stake in it. That is, its economy is about 25 percent of the world’s economy. So, Trump is showing his economic strength.
In fact, tariffs were first decided under the widespread agreement of the coast and trade general agreement (GAT) and then the World Trade Organization (Dbluto). Now Trump is eliminating him. The European Union leaders are also saying, “Whatever will be there, they will do it. It is Dadagiri.” In the process of imposing tariffs in the world under GAT and Dublutio, the US had approved that the countries which are poor or where technology is weak will have to give special discounts. Actually it was decided on the basis of high technology, intermediate technology and low technology. So, countries with intermediat and low technology began to increase production. For example, due to reduced China wages, things started making things cheaper. Then due to low wages, all the production and service sector went to countries like China, India, Mexico, Canada, while people working in industries like auto, steel in the US stopped getting work or had to do less money jobs. Now Trump’s declared intention is to bring back the production again.
But the question is how it will return. Due to low wages, goods will be cheaper in weak countries. Therefore, the goods will be expensive even if America wants to produce internal. Therefore, inflation will grow there faster. The second thing is that the supply chain will be disturbed. The US currently asks for goods from Canada, Mexico, China or other countries, to find other sources instead, to ask for cheap goods.
Employment generation crisis
The basic reason for this is the challenge of capitalism. America is not able to create enough good jobs for its workforce. Trump blamed China, Mexico and India for lack of jobs. During his election campaign, he said he would bring him back to America. Like his first term, when he asked American auto companies to increase domestic investment, this time also they are pressurizing companies to invest in the US to generate good jobs. Big businessmen were standing on their home by putting a line and promising big investment in America.
However, with the arrival of the World Trade Organization, the world was rapidly globally. Production was globally integrated. Long supply chains were established. Exports and imports in GDP increased dramatically everywhere. For example, India’s export and GDP ratio increased from about 7 per cent in 1991 to about 22 per cent in 2023. The same has happened to America or China. Partition of labor spread all over the world. Multinational companies created long supply chains to earn more profits and get things at affordable prices to get ahead of rivals. Low wages in developing countries became a source of cheap supply. Competition among developing countries also kept prices low. Advanced countries benefited from this because they could get goods cheaply, which improved the standard of living of their people.
Protests everywhere: anti -trump protest in Chicago, 5 April
Advanced countries producing high technology goods and services benefited from this division of labor overall. But the problem was that the production of advanced technology goods and services is highly automated and does not provide much employment. Thus, in the US, the workers displaced by moderate technology production (such as car and metal) could not get good employment. Therefore, the blue collar workers in the rusty belt were unhappy. Trump attracted him on his stage with a promise to get him back jobs.
But the US cannot produce moderate technology goods at low prices with its high minimum wages. This cannot match the prices on which China can supply these items. Therefore, if these jobs have to be brought back and producing in the US, then high duty will have to be imposed on imports of these items. If other countries also become protectionist and impose high duty on their imports, then the problem for the US and the world will increase even more.
Increased tariffs on imports will increase prices in the US. This will reduce demand and production in the US. Of course, this will mean decrease in exports of other countries and will also be slow in those economies. Thus, there is a possibility of high inflation and economic recession globally. It is difficult to overcome through fiscal monetary policy. The US government is also reducing good employment in education and health systems. The government efficiency department headed by Tech billionaire Elon Musk is rapidly decreasing government departments. This will reduce the demand.
Trump is doing exactly what he was threatening. All these have affected the financial markets -intelligence on investment, stock markets, currencies and gold prices. India’s stock markets have declined, the rupee has weakened against the dollar and the foreign exchange reserves have declined. This is going to affect the entire economy. The government has already given the indication of petrol-diesel and gas prices. China and Europe retaliated and gave a clear message to the US that they are not suppressed. There is a complete silence in India. But the option of sitting on hand sitting on hand and allowing the effects of Trump’s decisions is very dangerous. Till now, there was a possibility of affecting the trade tax tax of diamond-jewelry, auto parts, electronic priests and petroleum products and the stock market saw a significant decline in these shares. But banking shares have fallen, they are telling the threat of new financial crisis. On the other hand, it is also estimated that our agricultural sector will be badly affected, which does not have much activism in the stock market.
All these are affecting global development. The most impact of this is everywhere on the unorganized and marginalized sections of the population. The rapid spread of AI is further increasing their problems. Have to see what is going to happen next.
We will give a befitting reply to this injustice. America will be heavy. Not going to bend by any threat
Wang Yi, Foreign Minister, China
