The Trump administration reckons that high tariffs on imports would bring back manufacturing to the USA and help its economy rebound. It accuses its friends and foes alike of using tariffs, currency manipulation, and non-tariff barriers to bar American merchandise from entering their countries. Now, it has reciprocated but, mercifully, with reciprocat tariffs with half-discount.
Critics say this will not work for America. It will only create great difficulty for existing industries and consumers. They see a recession imminent following these measures.
The fact is that global supply chains have a rigidity of their own and cannot be undone in a whiff. More importantly, people fail to see that typical industries and businesses require a conducive ecology to flourish, and its crucial component is the availability of people attuned to particular jobs. This ecology is very difficult to create in a different place.
Things would reboot soon to the normal but with some painful disruptions and helpful corrections.
Meanwhile, India must brace for tech and trade wars engulfing the world by focusing on its internal economic order. It is about things already being done, i.e, furthering the ease of doing business, creating a more favourable ecology for innovativeness, and ensuring the safety and ease of living and doing things. Externally, India must make its economy so efficient and cost-effective that it has an edge over its competitors.
Niraj Kumar Jha
Very Nice Post.....
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