Lawrence H. Summers, former U.S. Treasury Secretary and Chief Economist of the World Bank, has strongly criticized President Donald Trump’s newly announced tariffs, emphasizing the severe economic impact.
“Never before has an hour of presidential rhetoric cost so many people so much,” Summers remarked, highlighting the market’s sharp reaction. He estimated that the financial loss from these tariffs now stands at nearly $30 trillion, translating to $300,000 per family of four.
TRUMP’S TARIFF PLAN
On April 2, a day he dubbed ‘Liberation Day’, Trump imposed a minimum 10% tariff on several countries. Some key tariff rates include:
- India – 27%
- China – 34%
- European Union – 20%
- Japan – 24%
- South Korea – 25%
- Switzerland – 31%
- United Kingdom – 10%
- Taiwan – 32%
- Malaysia – 24%
- Brazil – 10%
- Indonesia – 32%
- Vietnam – 46%
- Singapore – 10%
Additionally, sector-specific tariffs were introduced, with Indian automobiles facing a 25% tariff, a rate applied globally across all auto exports. However, certain industries, including pharmaceuticals, semiconductors, copper, lumber, gold, energy, and minerals, have been spared.
Meanwhile, Mexico and Canada will not see additional tariff hikes, as they are already subject to a 25% tariff.
IMPACT ON INDIA: WHAT EXPERTS SAY
Experts believe Trump’s tariff calculations are based on each country’s trade deficit with the U.S. rather than the actual tariffs imposed by those nations.
According to Emkay Global, India and the U.S. have been negotiating a trade deal, which could help cushion the impact of the tariffs.
A Bernstein report acknowledges that while a 27% tariff on India is steep, two of its biggest exports—IT services and pharmaceuticals—remain unaffected. The report suggests that India is likely to engage in negotiations rather than escalate tensions, and while short-term market sentiment may take a hit, a potential trade agreement with the U.S. could be a long-term positive development.
