US Tariff Shake-Up: Emerging Markets Brace for Impact

The US, led by the Trump administration, is set to implement reciprocity tariffs, affecting major trading partners like India and Brazil. This move could see heightened tariffs on US exports to these markets. Ongoing negotiations with India aim for a comprehensive trade agreement by 2025.

In a strategic policy shift, the Trump administration is poised to introduce reciprocity tariffs targeting key trading partners, particularly emerging markets, according to a report by Fitch Ratings. The policy set to commence on April 2, intends to align US tariffs with those imposed by their trade partners, potentially escalating costs for US exporters.

The move has prompted concerns among nations such as India, Brazil, and Vietnam, where existing tariffs on US goods are significantly higher compared to US tariffs on their exports. Fitch's analysis highlights the elevated risk these countries face under the new tariff regime proposed by President Trump.

Despite these tensions, US-India relations are experiencing a diplomatic boost with ongoing discussions aimed at forging a comprehensive trade agreement. Indian Commerce Minister Piyush Goyal's recent visit to the US underscored efforts to negotiate a Bilateral Trade Agreement by 2025, demonstrating a commitment to balancing trade policies.

(With inputs from agencies.)