RSS Leader Claims Trump’s 50% Tariff on Indian Goods Aimed at Reducing US Debt: What It Means for Trade Relations

US President Donald Trump has recently imposed a 50% tariff on goods from India. According to Mukul Kanitkar, a senior leader from the RSS, this move is linked to the immense national debt the US is facing, which exceeds its GDP. Kanitkar described the situation in the US as “catastrophic.” He urged that India could offer guidance during these challenging times.

Kanitkar pointed out that America’s GDP stands at about $29 trillion, while its national debt has ballooned to approximately $36 trillion. He used a common saying to highlight the issue of living beyond means: “Amdani athanni, kharcha rupaiya,” which means spending more than one earns.

He further claimed that if the debt isn’t addressed soon, the US government may struggle to pay its workers, having already “shut down” for a week in the past due to budget issues.

Kanitkar suggested that the hefty tariffs are part of Trump’s strategy to make America great again. He noted that the president is under pressure to manage a $9 trillion debt due in October, leading to the imposition of these tariffs on Indian goods.

The historical context here is noteworthy. In past economic crises, countries have often turned to tariffs as a solution. This echoes the Smoot-Hawley Tariff Act of 1930, which raised duties on imports in response to the Great Depression but ultimately worsened economic conditions.

Social media has been buzzing around this decision, with some users expressing concern while others debate its potential impact on global trade relations. A recent survey indicated that nearly 60% of Americans believe that heavy tariffs could lead to higher prices for consumers.

Experts in international trade suggest that while tariffs are aimed at protecting local industries, they often backfire, leading to trade wars that hurt everyone involved. A report from the Brookings Institution highlights that increasing tariffs could reduce economic growth and harm global partnerships.

As the situation evolves, the world watches closely, keeping an eye on how this will affect not just India and the US but global trade as a whole.

For more on the implications of tariffs and economic policies, check this Brookings Institution report.

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