The new Trump tariffs on steel and chips could adversely impact India’s steel exports as well as hamper the growth of its budding semiconductor industry.
Trump Tariffs: US President Donald Trump has announced that his administration is planning to impose tariffs on steel and semiconductors in the coming weeks, sparking panic among chip manufacturers across the globe. Trump said his new round of tariffs are aimed at boosting domestic manufacturing, but the rates will be kept low at first, to allow companies the time and opportunity to move their manufacturing operations to the United States.
Why Trump plans to slap tariffs on steel and chip manufacturers?
According to experts, Trump’s new tariffs are a part of his “America First” policy, which aims to strengthen domestic manufacturing in the US by forcing companies to manufacture high-value goods like electronics and semiconductor chips in America.
Trump indicated that he would be exempt companies who commit to increase manufacturing in the US, while others will have to pay high tariffs unless they follow suit. The US President said that akin to tariffs imposed on pharmaceuticals, the rates will be low at first, but will be gradually increased if steel and chipmaking firms fail to comply.
How Trump’s new tariffs could impact global markets?
Steel and semiconductors are two of the most high-value industries in the world and high-tariffs on these sectors could severely impact global markets and trade equations. Earlier, in February, Donald Trump had imposed a 25% tariff on steel and aluminum, which was doubled to 50% in May.
According to reports, the US President now plans to impose 100% tariff on semiconductor chips, but exemption will be provided to companies who pledge to invest and move their manufacturing to the US.
What will be the impact on India?
As per experts, the new Trump tariffs on steel and chips could adversely impact India’s steel exports as well as hamper the growth of its budding semiconductor industry. The announcement comes at a time when tech giant Apple has announced an additional investment $100 billion investment in the US.
