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American Tariff Implication
April 05, 2025
American Tariff Implication
* Its against WTO
Daring countries (like China) likely to take USA to WTO court
* Most strong trading countries are will consider retaliatory measures of USA by matching the tariff %.
* All countries will get protective, most will try to be self-reliance
* Demand for resources will drop.
* World Inter-trade will drop, thus the economy growth will be lower
Many predicts to drop by 1-2%
* Poverty will increase; eg like Pakistan & Bangladesh
* Biggest affected country is China
* India’s performance depends how they over-come to win this challenge
B’cos the the trading competitors with USA are slapped with more tariff
China, Japan, Vietnam, Thailand are all more than 26%
* The strong trading countries will take shelter with other similar countries avoiding USA
* The supply chain avoiding USA will grow
* Trade between China, India, EU, Canada & Mexico, will grow
* In short term, USA will gain a lot in tariff and imports will dwindle
* The interest rate in USA and most countries will drop
* Most currency (excl-USD) will dilute faster; Indian rupees may drop by 10%
The subject remains work in progress. B’cos for every action there is reaction. With Trump being unpreditable; the results may continuosly evolve. Change is for sure with more uncertainty
Rgds, KESH Muthu
Ceha,Sg Liam,My Cima,Uk
Huttons-Sg/ BizMerger/ Esprit-My
Mob: +65-9009-9036 (Sg)/ +6010-702-6377 (My)