The adjusted ‘reciprocal tariffs’ announced by the US government came into effect on the 7th, impacting numerous trading partners with tariffs ranging from 10% to 41%, including a 15% rate for Japan. President Trump signed an executive order on the 6th imposing an additional 25% tariff on Indian products imported into the US as a response to India indirectly importing Russian oil.
Facing the US’s tariff threats, Japanese Prime Minister Yoshihide Suga stated that the US has not implemented previously agreed-upon terms and ‘strongly demanded that corrective measures be taken immediately’. Indian Prime Minister Narendra Modi, on the other hand, emphasized that India will not sacrifice domestic industry interests, even at the cost of not meeting US conditions.
On July 7th, at the White House in Washington D.C., White House Press Secretary Jen Psaki stated that the US remains committed to addressing unfair trade practices that harm American workers and families. The US actions have drawn criticism from allies as well as trading partners, with both Japan and India expressing concerns over the impact of the tariffs on their respective economies.
The escalating trade tensions between the US and its trading partners have raised fears of a global trade war, with potential negative consequences for the world economy. The US tariffs have been met with retaliatory measures from affected countries, creating a cycle of escalating tariffs that threaten to disrupt global trade and supply chains.
In response to the US tariffs, Japan and India have both voiced their opposition to the measures, with Japanese Prime Minister Suga calling for a revision of the US executive order and Indian Prime Minister Modi warning of the consequences of not meeting US conditions. The impact of the tariffs on the global economy remains uncertain, with analysts warning of potential disruptions to trade flows and economic growth.
