The trump administration has effectuated its new tariffs today starting what could soon snowball into a global tariff war or worse into a global trade war. It has raised tariffs to upto 10-50%. India which until now faced a tariff of about 9.86% would now have to pay 26%. For an economy bearing a merchandise trade deficit of over 200 billion dollars the surplus of 21 billion dollars it enjoys with USA is a huge support and the tariffs could upset it. The rupee is already under pressure and common man is reeling under high inflation. The modi government has meanwhile agreed to cut reciprocal tariffs on agricultural goods and it may hit the farmers hard. The WTO regime has been hit hardest and the era of globalization is not a given anymore
