Reciprocal Tariffs: US to Apply Them to Every Country
Why in the news
Ahead of the April 2 tariff announcement, the US President ruled out any country-wise relief. This dented hopes of tariff concessions for India and others, and shook global markets.
Key facts
- Reciprocal tariffs were to be declared on April 2 and would cover every country the US was negotiating with.
- Trump described the tariffs as “generous” and said the US would be “nicer” than other nations had been in trade dealings.
- India was in talks on a Bilateral Trade Agreement (BTA) seeking tariff concessions.
- Without naming nations, Trump pointed at Asian trade practices, saying no country had treated the US fairly.
- Gold climbed to record levels on demand for safe-haven assets.
Market reaction
| Market / index | Move |
|---|---|
| Nasdaq Composite (US) | Down 1.9% |
| S&P 500 (US) | Down 0.8% |
| Dow Jones (US) | Unchanged |
| CAC 40, Euro Stoxx 50, DAX (Europe) | Down 1.5-1.7% |
| TAIEX, Nikkei 225, Kospi (Asia) | Down 3-4% |
Impact on India
- Cloud over India-US trade ties, as the BTA talks were under way.
- New levies could hurt Indian exports; the full effect was expected to emerge over the following months.
Exam angle
- Date of the tariff declaration: April 2.
- Related term: Bilateral Trade Agreement (BTA).
- European indices named: CAC 40, Euro Stoxx 50 and DAX; Asian ones: TAIEX, Nikkei 225 and Kospi.