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Donald Trump Reciprocal Tariff: US President Donald Trump gave a major blow to India on Wednesday morning. Addressing the joint session of the US Parliament (Congress), he said that India charges more than 100 percent tariffs from us, we are going to do the same from next month. That is, from April 2, Donald Trump will implement the reciperook tariff policy on Indian products. In her 1 hour 44 minute speech, Trump said that what she did in 43 days could not do many governments in her 4 or 8 -year tenure. Let us now tell you what is the meaning of the word reciperook and when this country puts it on another country.
What is a reciperook tariff?
Reciperochl means ventilative. That is, like a tit policy. Understand this that reciperook tariff is a tax or trade ban that one country imposes on another country when that country also imposes the same tax or ban on the country first. Meaning, if one country imposes 100 percent tax on the goods of another country, then another country can also impose the same tax. Its purpose is to balance business.
What is the purpose of reciperook tariff?
- Business Balance: Ensuring that no country impose more tax on other countries.
- Security of local industries: Local industries benefit due to expensive foreign goods.
- Part of business talks: Many times countries use it as a dialogue so that the other country reduces tax.
Disadvantages of reciperook tariff
- Trade War: If both countries keep taxing each other, then this trade war can turn into a trade war.
- Inflation: Consumers are harmed due to expensive foreign goods.
- Interruption in supply chain: Global supply chain is affected by business war.
History of reciperook tariff
The reciperook tariff started in the 19th century. In 1860, the Cobden-Shewelier Treaty was signed between Britain and France, in which tariffs were reduced. Subsequently, the 1930s came when the US implemented the Smut-Hole Tariff Act, affecting the global trade and increased the palatics. Recently, the Trump administration imposed tariffs on China, European Union and other countries, in response to which those countries also taxed American goods.
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