Trump’s High Tariff Warning: Impact on India, China & BRICS Trade Policies.

New York: U.S. President Donald Trump has announced plans to impose strict taxes on countries that exert tax pressure on the United States. In this context, it is reported that China has agreed to expel Chinese nationals from the U.S. due to concerns over American taxation policies.

Accordingly, if a list of Chinese nationals residing illegally in the U.S. is released, China has stated that it is ready to deport them based on that information.

Trump has identified China, India, and Brazil as nations that impose high taxes on the U.S. and declared that his administration will impose additional tariffs on these countries. He claims these nations engage in activities that harm the U.S. economy, imposing taxes on foreign goods and using the revenue for their national development.

Trump stated that since countries like China impose heavy tariffs on foreign imports, the U.S. must also take similar measures to prioritize its own economy. He warned that he might impose a 100% tariff on BRICS nations, including India, if they attempt to move away from the dollar-based trade system.

In response to Trump's warnings, Prime Minister Modi and his team are reportedly devising key strategies. The U.S. has issued a strong warning that if BRICS countries reduce dollar-based trade, it will retaliate with a 100% tariff.

Additionally, Trump is considering imposing a 20% additional tax on certain countries, including India, citing their taxation policies. A 20% tariff on Canada and Mexico is already set to take effect on February 1. Announcements regarding tariffs on China are expected next week, followed by India.

India's Master Plan to Counter the U.S. Tariff Threat
To address this challenge, India is considering measures such as:

• Reducing tariffs on American goods
• Increasing imports of soybeans, dairy products, automobiles, medical equipment, aircraft, electronics, high-tech machinery, and textiles from the U.S.
• Enhancing chemical imports from the U.S.
• Reaffirming its commitment to dollar-based trade rather than shifting to BRICS currency
• India has already assured BRICS nations that it prefers dollar trade and is not keen on adopting a BRICS currency. This decision aligns with U.S. interests but could come as a shock to Russia and China, which oppose dollar trade. Despite this, the U.S. continues to warn BRICS nations, while India may take further steps to maintain a favorable relationship with the U.S.