Donald Trump is back with his aggressive trade policies. During a Republican Party event in Florida, he made it clear that if he becomes president again, his “America First” economic model will be even more aggressive. This time his target is to impose heavy tariffs on countries that, according to him, are doing unfair trade with America. This list includes big countries like China, India and Brazil.

What is Trump’s plan?

Trump says that if other countries impose high tariffs on American products, then America should also increase tariffs on these countries keeping its own benefit in mind. He has proposed the idea of 100% tariff, which includes BRICS countries as well – meaning India too cannot escape its impact. Trump wants American companies to bring their manufacturing back to the USA. He says if a company wants to avoid tariffs, it will have to set up production in America itself. This model will focus more on pharmaceuticals, semiconductors, and steel industries.

Factory boom inside America or inflation?

Trump’s argument is simple – if we support American workers and factories, America will once again become an economic superpower. But experts consider this policy risky. If America imposes tariffs on other countries, then naturally these countries can also impose tariffs on America’s exports in retaliation. This can give birth to a new trade war, in which the global economy and inflation can become more unstable.

The biggest question is that if Trump’s plan is successful, will it benefit America or will global trade relations become more complicated? Will big markets like India and China respond to this challenge? Or is it just a political stunt that is being highlighted more during the elections?

The coming months will decide whether Trump’s economic nationalism will be beneficial for America or will start a new trade crisis.