TRUMP’S TARIFFS IGNITE GLOBAL BACKLASH AND TRADE WAR FEARS

An Emirati Magazine publication – Released on April 03, 2025 | www.emiratimagazine.com

On April 2, 2025—termed “Liberation Day” for American trade policy—U.S. President Donald Trump imposed a 26% reciprocal tariff on imports from India, Japan, and other nations. This protectionist move, part of his "America First" agenda, has triggered global backlash and fears of a new trade war. Experts predict these tariffs could push countries toward de-globalization and bilateral trade agreements, potentially diminishing the role of the WTO.

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Economist Lawrence H. Summers criticized the policy on X, stating, “Never before has an hour of Presidential rhetoric cost so many people so much.” He estimated the economic loss at nearly $30 trillion. Analysts warn that these tariffs could drive up inflation and disrupt the Fed’s monetary policy, further slowing U.S. growth. Despite concerns, some experts believe this shift may create opportunities for India to position itself as a stable trade partner in a rapidly evolving global economy.