US President Trump's tariff move shakes global trade. Know how this affects global economy, key takeaways for UPSC, SSC, Banking exams. GK Update March 2025.
Trump’s Tariff Policy: What It Means for the World | Atharva Examwise Current News
In a major shift towards protectionism, US President Donald Trump has started imposing massive import tariffs from April 2, 2025, marking the biggest policy change in 100 years. This move has caused significant ripples across global financial markets, with stock indices plunging sharply. Let’s decode what Trump wants, how it all began, and what it means for India and the world.
What Has Trump Done So Far?
Trump has initiated a series of tariff hikes targeting major trading partners, including China, Canada, and Mexico. Here's a timeline of his recent actions:
February 2025: Imposed 10% tariff on imports from China
March 2025: Increased it to 20%
March 2025: Slapped 25% tariffs on most goods from Canada and Mexico
March 12, 2025: Added 25% duty on steel and aluminium imports
March 26, 2025: Extended 25% tariffs to vehicles and parts
Also rolled back some tariffs in response to diplomatic efforts by Canada and Mexico
Why is Trump Imposing These Tariffs?
Trump’s “Tariff Agenda” is driven by three main objectives:
Boost domestic manufacturing in the United States
Increase government revenue
Put diplomatic pressure on trading partners (notably China, Canada, and Mexico)
He particularly emphasized curbing illegal immigration and drug trafficking from Mexico, which led to temporary relief on some tariffs.
Is Trump's Strategy New?
Not entirely. The US has a history of heavy tariffs, especially in the early 20th century. However, after the 1930s Great Depression, this approach was largely abandoned due to its negative global consequences, including retaliatory tariffs and declining trade.
Trump’s strategy revives this old playbook in a modern context, risking similar fallout.
🇨🇳 Why is China at the Center of Trump’s Tariff War?
China has become a dominant global economic power
Accused of subsidizing local industries and forcing foreign firms to share technology
Trump views this as unfair trade, using it as a pretext for tough action
The US business community’s earlier support for free trade has weakened, giving Trump political space for such aggressive moves
🇺🇸 How Will Tariffs Impact the US Itself?
While the intention is to protect jobs, there are potential downsides:
Yale University estimates that uniform tariffs on Chinese, Canadian, and Mexican imports could cost each American household ₹1.7 lakh/month
US companies relying on global supply chains may suffer losses
Prices of goods could rise, affecting American consumers
Key Takeaways for Competitive Exam Aspirants
Topic: US Tariff Policy 2025 – a major event in international trade
Main countries involved: China, Canada, Mexico
Trump's goals: Domestic jobs, revenue, diplomatic leverage
Historical link: Similar policies were followed before the 1930s Great Depression
Economic impact: Higher consumer costs, possible trade war
India’s concern: Global instability affects export/import-based businesses
Why This Matters for Exams
This topic is critical for UPSC, SSC, Banking, and State PSC exams under the following areas:
International Relations and Trade Policies
Global Economic Trends
Current Affairs March 2025
Daily GK Update for Competitive Exams
It helps understand how global protectionist policies can reshape trade, diplomacy, and economics. Expect questions on tariff impacts, trade wars, and economic history parallels.
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