TRADE WAR (DONALD TRUMP VS Modi)....
TRADE WAR
Trade war is the biggest problem of today's time, a situation of discord has arisen between many countries, so let us tell you what it is ?
∆ Tariff is the beginning of trade war ∆
⭕What is a tariff ❓
🔹When a country imports goods from another country, the *extra tax* imposed on the imported goods is called tariff.
🔹For example – America has imposed tariff on many countries,,,,,,,,,,
America vs India
TRUMP VS INDIA...
🔹 Like recently on India – America(Trump ) has imposed 50% tariff on India *
०For example, if India sells an item to America whose price is 10000000 (one crore).
० America has imposed 50% tariff on it = 5000000 (fifty lakhs)
० Now America(Trump) will sell the same item in the market for 15000000.
🔸INDIA will suffer these losses due to America's tariff.
1. Low sales – People of America will not buy any kind of goods from India if the goods become expensive or will buy less.
2. Exports will decrease
- If exports decrease, then the sales of Indian factories will also decrease, this will cause loss to India.
3. Economic deficit
- India will get less foreign exchange dollars.
4. Impact on jobs -
People who are working in that industry and if there is no industry, their jobs can be in danger.
Benefit to America on increasing tariff -
1. Saving its industries -
If Indian goods become expensive, American companies will benefit because now people of America will buy goods only from American companies.
2. The extra tax that has been taken will go to the treasury of the American government.
3. This will put pressure on India to either accept the conditions of America or reduce the price.
⭕ This is where it starts (Reciprocal Tariff - Tax in return)
> If a country imposes tariff on the goods of another country, then the other country also imposes tariff on its goods in response. This is called Reciprocal Triff - Tax in return.
For example
- India and America
◾America imposed 50% tariff on India.
o In response, India also imposed 60% tariff on America.
NOW THE TRADE WAR HAS BEGUN…..
>When two or more countries repeatedly impose tariffs or restrictions on each other's goods so that they can cause economic damage to each other, then this is called trade war.
> Trade war has become the biggest war of today's time. It is a war without weapons which harms the economic condition of countries.
AMERICA VS CHINA
>Trade war between America and China -
◾ Trade war between America and China started in 2018.
◾America imposed heavy tariff on China's steel, electronic goods etc.
◾In response, China also imposed tariff on America's soybean, cars and aircraft.
◾Companies and farmers of the countries suffered huge losses.
WHY IS TRADE WAR DANGEROUS -
1. Goods become expensive
2. Trade decreases for both the countries
3. This slows down the economic development of the country
4. Both companies and common people suffer losses......
CONCLUSION -
Trade war is not a good foundation, it spoils the relations of the country, so we should all the countries develop economically and increase the economy of their country.,,,,,,,,,,,.
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