The Guardian recently released a report about Donald Trump’s tariffs replacing diplomacy as other US tools of statecraft get discarded. This is quite an interesting piece, especially as the US President appears ready to impose a further 25% tariff on India – bring the total to 50%.
Just a handful of days ago, global equity funds came under an intense selling pressure as tariffs and economic concerns came under the limelight. Fund investors rushed to lock in profits from a recent rally after Trump announced steep tariffs on exports.
The investors also expressed caution because of a disappointing US jobs report. But earlier this month, officials defended Trump’s firing of the head of the Bureau of Labour Statistics, pushing back against criticism that the President’s action could undermine confidence in economic data.
Tightening of relations among BRICS nations
Coming to India, both countries are yet to reach a suitable trade agreement. Trump could be imposing an additional 25% tariff on Delhi – taking the total to 50% – the joint highest tariff on any country, in addition to Brazil.
In the case of Brazil, the US President has said that the 50% tariff is because of the trial of his political ally, former President Jair Bolsonaro – accused of plotting a military coup after losing in the 2022 presidential election.
Nonetheless, it appears BRICS nations – making up 40% of the global GDP – are gradually tightening their relations. Constituting Brazil, Russia, India, China and South africa, this group is definitely in the limelight for a number of reasons.
