Beginning of World War… oh sorry, this time it’s Trade War.
Trump = Tariff
Trump “needs to make America great again (MAGA)”,
But the economy is seeing weak growth that the tariff has created, & cherry on top — high inflation.
Everyone expected tariff, so market must have already priced in tariff.
Why such a fall in last two days?
Sorry, my bad — markets are not falling, it’s crashing, like last it crashed in 2020 in COVID times.
Trump gave a surprise and regarded the worst-case scenario that exceeded expectations and drew a crash in markets.
hashtag#India is also in pain, still happy.
When everyone gets failed, the joy lies in comparing and seeing who failed better.
India faces a reciprocal tariff of 27%
Lower than Asian competitors:
China: 34%
Vietnam: 46%
Indonesia: 32%
Let’s look industry-wise impact:
Automobile Industry 🚗
Jaguar and Land Rover will face an impact because 1/3 of demand comes from America.
Royal Enfield will see a minor impact on revenue because 8% market share is from America.
Science ⚖️
For each action, there is an equal reaction.
EU & China are looking for retaliation of tariffs.
Recession Day ⚠️
US economy is at a heavy risk of slipping into recession. It can drag down the global economy.
Massive Overdumping could trigger 📉
Because exporting to US will not be beneficial, so products would be sold at heavy discount to clear inventory.