Trump Tariff: Trump Tariffs created an uproar, know what is 'tariff and reciprocal tariff'..

US President Donald Trump is a topic of discussion in the media these days. Wherever you look, there is talk of his tariff. But what is this? Should Indians worry about it? Who is most harmed by this tariff (Trump Tariffs News)? Let's understand.

First of all, we will understand the meaning of the word tariff.

What is a Tariff?

A tariff is a kind of tax that any country levies on its imports. This is done so that more and more products are made within the boundaries of that country. At the same time, the artisans, farmers, and traders of the country do not suffer any kind of loss.

For clarification, let's take the example of China and India.

Understand with an example.

According to the website of WITS, India levies a 30 percent tariff on most goods from China. Suppose China wants to sell (export) an item to India, then India will charge a tariff on it to buy (export) that item.

Tariff is a kind of tax on export-import. Now India is levying a tariff (tax) so that big traders buy fewer goods from other countries and more things are made in India itself. This will create employment in India and protect the interests of small artisans.

This way, the country will also maintain the Trade Deficit. Now, let's talk about America's reciprocal tariff.

What is a reciprocal tariff?

The President of America says that many countries charge tariffs many times more than they. In a statement to the media, he criticized India for charging a higher tariff. If Donald Trump is to be believed, this reciprocal tariff has been imposed on those countries that have been charging a higher amount of tariff from them for a long time. Reciprocal tariff is a kind of tariff in return for the tariff of the other country. It can also be understood as tax in return for tax.

What is FTA?

Now you must have heard the name of the Free Trade Agreement. Free trade agreement means that the countries which sign this agreement will not levy any kind of tax on trading with each other. Recently, the free trade agreement between India and Britain was in the news.

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