As US President Donald Trump prepares to announce new tariffs, Canadian officials are vowing to protect workers and push back against the US.

Taylor Bachrach, a member of Canada’s parliament, said the country is united in its commitment to defend industries like softwood lumber, which heavily relies on exports to the US. Speaking from British Columbia, Bachrach acknowledged growing concerns among workers about the economic fallout of Trump’s tariff policies, reported CNN.

Canada has already signaled possible retaliatory measures. While details remain unclear, Bachrach stressed that any response would aim to strike the US economy while minimizing harm to Canadian jobs. He described the situation as a “critical moment” in US-Canada relations, forcing a reassessment of economic ties between the two long-time allies.

US President Donald Trump’s most aggressive attempt yet to reshape global trade could have a direct impact on everyday Americans, potentially driving up prices at a time when household budgets are already stretched.

As per CNN, Trump’s strategy hinges on imposing tariffs to pressure companies into moving manufacturing and supply chains back to the United States, aiming to create jobs and revive struggling regions. However, this approach comes with risks—tariffs are likely to raise costs for consumers, and there is no certainty that businesses will relocate operations, given the long-term investment required.

If Trump proceeds, he will be making a major political gamble, banking on future economic gains while forcing short-term sacrifices. Yet, he appears unfazed by the potential fallout, even as concerns grow over inflation and the cost of living, according to CNN.

As US President Donald Trump prepares to announce the details of his aggressive tariff policy, Republican senators have expressed concern about its short-term economic effects, even as they back his broader trade vision.

Senator John Kennedy acknowledged Trump’s push to encourage foreign businesses to relocate to the US but warned that immediate economic consequences must be considered. “In the long run, we’re all dead. The short run matters, too,” he told CNN, adding that predictions about the impact of tariffs range from economic catastrophe to minimal disruption.

With Trump set to unveil his “Liberation Day” trade plan at 4 pm ET, speculation surrounds the scope of the levies, which could include 25% tariffs on Mexico and Canada, as well as duties on lumber, pharmaceuticals, and microchips.

Kennedy cautioned that, in a worst-case scenario, tariffs could push up inflation and interest rates, slowing the economy into a recession. Meanwhile, Senator Shelley Moore Capito voiced support for fairer trade deals but admitted concerns over rising consumer prices, particularly for groceries and cars.

White House aide Peter Navarro has claimed that US President Donald Trump’s tariffs will generate $6 trillion in revenue over the next decade, which would be the largest tax increase in US history. Adjusted for inflation, this figure would be three times the tax hike imposed in 1942 to fund World War II.

Navarro, Trump’s senior counselor for trade and manufacturing, rejected the notion that tariffs act as a tax increase, instead calling them a tax cut that benefits American workers and strengthens national security. “Tariffs are great for America. They will make America great again,” he said on Fox News Sunday.

However, most economists argue that tariffs function as a tax on American businesses and consumers, leading to higher prices rather than forcing foreign governments or companies to bear the cost.

House minority leader Hakeem Jeffries criticised Donald Trump's plan to announce new reciprocal tariffs, rejecting US president’s branding of the day as “liberation day.”

“This is not liberation day. It’s recession day in the United States of America,” Jeffries told reporters, arguing that the tariffs would hurt the economy. He blamed Trump’s policies for economic instability, claiming the downturn began on January 20 of this year.

With Democrats holding a minority in both the Senate and the House, their ability to counter Trump’s trade agenda remains limited.

US manufacturing activity declined in March, reversing two months of expansion, as firms dealt with uncertainty over President Donald Trump’s tariff plans, according to survey data released Tuesday.

The Institute for Supply Management (ISM) manufacturing index fell to 49.0 percent, down from 50.3 in February, indicating contraction. The drop was below market expectations of 49.8 percent.

“US manufacturing slipped into contraction after marginal growth in February,” ISM survey chief Timothy Fiore said. He noted that demand and production declined, and job cuts continued as companies reacted to uncertainty. Price growth also accelerated due to tariffs.

Firms reported delays in new orders and supply chain disruptions. A respondent in the computer and electronics sector cited customer concerns over tariffs, while another in the machinery sector said business conditions were “deteriorating at a fast pace.”

Trump is set to announce reciprocal tariffs at 3:00 pm Washington time (1900 GMT) on Wednesday, which he has called “liberation day.” Economists warn that if the tariffs are imposed as expected, US industrial activity could decline sharply.

Goldman Sachs has increased the likelihood of a US recession to 35% over the next 12 months, up from its previous estimate of 20%, as rising tariffs threaten economic stability.

The Wall Street bank also revised its economic outlook, cutting its 2025 GDP growth forecast to just 1% while raising its year-end unemployment projection to 4.5%.

The bank attributes this shift to declining consumer and business confidence, as well as White House policies that appear willing to accept short-term economic strain. While Goldman still believes the US may avoid a full recession, its revised projection marks the highest risk estimate since the banking crisis two years ago.

US manufacturing activity declined in March, reversing two months of expansion, as firms dealt with uncertainty over President Donald Trump’s tariff plans, according to survey data released Tuesday.

The Institute for Supply Management (ISM) manufacturing index fell to 49.0 percent, down from 50.3 in February, indicating contraction. The drop was below market expectations of 49.8 percent.

“US manufacturing slipped into contraction after marginal growth in February,” ISM survey chief Timothy Fiore said. He noted that demand and production declined, and job cuts continued as companies reacted to uncertainty. Price growth also accelerated due to tariffs.

Firms reported delays in new orders and supply chain disruptions. A respondent in the computer and electronics sector cited customer concerns over tariffs, while another in the machinery sector said business conditions were “deteriorating at a fast pace.”

Trump is set to announce reciprocal tariffs at 3:00 pm Washington time (1900 GMT) on Wednesday, which he has called “liberation day.” Economists warn that if the tariffs are imposed as expected, US industrial activity could decline sharply.

Donald Trump is set to announce sweeping new tariffs, branding them as "Liberation Day" measures aimed at reshaping global trade. The move has sparked concerns over economic fallout, with key US trading partners warning of retaliatory actions. Trump’s tariffs, expected to be revealed at a White House ceremony, come as part of his long-standing push for what he calls reciprocal trade. The president argues that the US has been taken advantage of by both allies and rivals and that these tariffs will restore fairness. However, critics warn that they could harm American consumers and businesses while triggering a trade war.

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US President Donald Trump is doubling down on tariffs, arguing they will revive American manufacturing and boost government revenue. Critics warn they could fuel inflation and trigger a damaging trade war. Tariffs are fees on imported goods, paid by businesses bringing products into the country. Companies either absorb the costs, pass them to consumers, or seek alternatives. Tariffs generate government revenue and protect domestic industries by making foreign goods more expensive.

French central bank governor François Villeroy de Galhau said Wednesday that US tariffs expected from President Donald Trump will not significantly impact Europe’s disinflation process or the European Central Bank’s (ECB) plans for further rate cuts.

Speaking to Midi Libre, de Galhau noted that eurozone inflation had fallen to 2.2% in March, nearing the ECB’s 2% target. He emphasized that the eurozone was “winning the battle” against inflation, suggesting this progress could allow for additional rate cuts.

While concerns persist over how US trade policies and German spending plans might affect inflation, de Galhau said the ECB's April decision would depend on fresh data. He expressed confidence that ongoing disinflation would provide a strong foundation for economic stability.

The extent of Trump's tariffs and their targets remained unclear ahead of his announcement scheduled for 2000 GMT Wednesday.

Senate Republicans are facing mounting pressure from former President Donald Trump to oppose a Democratic resolution that would nullify his emergency declaration on fentanyl—an authority he is using to justify tariffs on Canada.

Just hours before unveiling his “Liberation Day” trade plan targeting China, Mexico, and Canada, Trump called out four Republican senators—Lisa Murkowski, Susan Collins, Mitch McConnell, and Rand Paul—urging them to reject what he called the Democrats’ “wild” push to shield Canada from penalties.

Britain's finance minister Rachel Reeves said the UK would take a measured approach to impending US tariffs, prioritizing a post-Brexit trade deal with Washington over immediate retaliation.

"The prize on offer is a good economic agreement between us and the United States, we won't do anything to put that in jeopardy," Reeves told a parliamentary committee.

She confirmed ongoing discussions with the EU and other nations on an "appropriate response" but dismissed any retaliatory measures that could be seen as "posturing." The UK is also considering scrapping its £800 million ($1 billion) digital tax on tech giants to ease tensions and secure a deal.

The US is Britain's largest single-country trading partner, and the UK’s budget watchdog estimates that tariffs of up to 20% could shrink GDP by 0.6% in 2026-27.

Experts warn that U.S. reciprocal tariffs could significantly impact Indian exports across sectors, including agriculture, pharmaceuticals, machinery, and electronics, due to high tariff differentials.

The tariff gap—representing the difference between U.S. and Indian import duties—varies widely: 27.83% for seafood, 13.3% for jewellery, 10.9% for pharmaceuticals, and 7.2% for electronics. Shrimp exports, which account for 40% of India’s seafood shipments to the U.S., could be severely affected.

"Already our exports face anti-dumping and countervailing duties in the U.S. The additional hike will make us uncompetitive," said seafood exporter Yogesh Gupta.

Pharmaceuticals, India’s largest industrial export at $12.72 billion, could see higher costs for generic drugs. Jewellery exports ($11.88 billion) may lose competitiveness, while machinery and electronics face 5-7% tariff hikes.

Ajay Srivastava of the Global Trade Research Initiative (GTRI) noted that dairy exports, worth $181 million, face a 38.23% tariff gap, which could drive up prices for ghee, butter, and milk powder.

Reciprocal tariffs, set to be announced Thursday as part of Trump’s “Liberation Day” move, may also factor in non-tariff barriers and currency impacts, adding to trade uncertainty.

The Indian government has set up a control room to closely monitor U.S. President Donald Trump’s announcement on reciprocal tariffs, scheduled for 1:30 AM IST, sources said. Senior officials from key ministries, including commerce and industry, will be present to assess potential implications for India’s trade.

India braces for possible scenarios
The commerce ministry is preparing for four possible tariff scenarios, given uncertainty over how the U.S. will impose the duties—whether by country, sector, or product. With the U.S. being India’s largest trading partner, domestic exporters are concerned that higher tariffs could make Indian goods uncompetitive in global markets.

However, there is hope that ongoing India-U.S. trade negotiations might lead to a more favorable outcome. Both nations aim to finalize the first phase of a bilateral trade deal by late 2025 and have set a target to more than double bilateral trade to $500 billion by 2030.

Tariff gap between India and the US
According to the U.S. Trade Representative’s 2025 National Trade Estimate Report, American exports to India face significantly higher tariffs than Indian goods entering the U.S.

U.S. goods face an average tariff of 7.7% in India, while Indian exports to the U.S. attract only 2.8%.

Indian farm exports to the U.S. face a 5.3% duty, while U.S. farm exports to India face a much steeper 37.7%.

With trade tensions rising, India’s response will depend on Trump’s final tariff announcement.

US President Donald Trump is set to unveil sweeping tariffs, branding the move as “Liberation Day.” The decision has triggered sharp responses from global trade partners, with key economies preparing to retaliate.

Europe’s response: Retaliation looms
German Chancellor Olaf Scholz vowed the European Union would react “clearly and decisively” but left room for dialogue. European Commission President Ursula von der Leyen warned that while the EU prefers cooperation, it has a “strong plan” for retaliation. The EU has already imposed tariffs on $28 billion worth of U.S. exports, including bourbon and motorcycles.

Germany, a major auto exporter, faces a direct hit from Trump’s proposed 25% tariff on car imports. Finance Minister Joerg Kukies recently visited Washington to discuss countermeasures. Meanwhile, Italian Prime Minister Giorgia Meloni urged diplomacy, warning that tariffs could hurt Italian exports.

Asia’s unified front
China, Japan, and South Korea held their first high-level trade talks in five years, pledging to strengthen free trade. South Korea’s Industry Minister Ahn Duk-geun stressed the need for a “predictable trade environment.” Chinese official Wang Liping condemned “unilateralism and protectionism,” warning of risks to global stability.

North America: Retaliation in motion
Canadian Prime Minister Mark Carney informed Trump that Canada would impose retaliatory tariffs if the U.S. proceeds. Mexico’s President Claudia Sheinbaum also signaled countermeasures but left room for negotiations.

Impact on US economy
Economists warn that retaliatory tariffs could cost the U.S. over $100 billion, slashing GDP by 0.4%. Retailers are bracing for higher costs. Best Buy CEO Corie Barry emphasized global trade’s importance, while Target CEO Brian Cornell warned of “meaningful pressure” on profits.

With uncertainty looming, markets remain volatile as Trump’s announcement approaches.

US stocks are swinging again Wednesday in the final hours before President Donald Trump unveils the tariffs he promised as part of his “ Liberation Day ” that could drastically remake the global economy and trade.

The S&P 500 was flat in morning trading after roaring back from an early loss of 1.1%. It’s had a pattern this week of opening with sharp drops only to finish the day higher. The Dow Jones Industrial Average was up 28 points, or 0.1%, after erasing an initial drop of 360 points. The Nasdaq composite was 0.1% lower, as of 10:35 a.m. Eastern time.

Financial markets around the world have been particularly shaky lately because of all the uncertainty around what Trump will announce in the event scheduled to begin after the U.S. stock market closes for the day. He has said he wants tariffs to make the global system more fair and to bring manufacturing jobs back to the United States from other countries.

But tariffs also threaten to grind down growth for the U.S. and other economies around the world, while worsening inflation when it seems to be remaining stubbornly higher than the Federal Reserve’s 2% target. Much is still unknown about what Trump will say, including how big the tariffs will be, which countries will be hit and what kinds of products will be targeted.

Trump will unveil the tariffs at a White House event scheduled for 4:00 p.m. (2000 GMT), flanked by cabinet members. While the administration remains tight-lipped on specifics, the measures are expected to expand recent tariffs on auto imports, steel, aluminum, and a range of goods from China, Canada, and Mexico. Additional levies on pharmaceuticals, lumber, copper, and computer chips are also anticipated.

"April 2, 2025, will go down as one of the most important days in modern American history," said White House press secretary Karoline Leavitt on Tuesday, adding that the tariffs will take effect immediately.

Reciprocal tariffs are import taxes imposed on foreign goods to match the tariffs those countries place on American exports. Trump has long insisted that foreign nations bear the cost of these levies, but in reality, importers—mostly US companies—pay them. These costs are typically passed on to consumers in the form of higher prices.

Tariffs are intended to protect domestic industries by making imported goods more expensive, thus encouraging local production. However, they often provoke retaliation. The European Union, for example, responded to Trump’s previous tariffs on steel and aluminium by imposing taxes on US products, including bourbon and motorcycles. China, too, has targeted American exports like soybeans and pork.

Experts warn that US reciprocal tariffs could significantly impact Indian exports across sectors, including agriculture, pharmaceuticals, machinery, and electronics, due to high tariff differentials.

The tariff gap—representing the difference between U.S. and Indian import duties—varies widely: 27.83% for seafood, 13.3% for jewellery, 10.9% for pharmaceuticals, and 7.2% for electronics. Shrimp exports, which account for 40% of India’s seafood shipments to the U.S., could be severely affected.

"Already our exports face anti-dumping and countervailing duties in the U.S. The additional hike will make us uncompetitive," said seafood exporter Yogesh Gupta.

Pharmaceuticals, India’s largest industrial export at $12.72 billion, could see higher costs for generic drugs. Jewellery exports ($11.88 billion) may lose competitiveness, while machinery and electronics face 5-7% tariff hikes.

Ajay Srivastava of the Global Trade Research Initiative (GTRI) noted that dairy exports, worth $181 million, face a 38.23% tariff gap, which could drive up prices for ghee, butter, and milk powder.

Reciprocal tariffs, set to be announced Thursday as part of Trump’s “Liberation Day” move, may also factor in non-tariff barriers and currency impacts, adding to trade uncertainty.

Stock markets in the U.S. and Europe fell Wednesday as investors braced for President Donald Trump’s announcement of fresh tariffs, which could spark a global trade war.

The Dow Jones, Nasdaq, and S&P 500 opened lower, mirroring losses in Frankfurt and other European indices. Oil and the dollar also dipped, while gold—seen as a safe-haven asset—neared record highs.

"For traders and investors, today represents a day of huge uncertainty," said Joshua Mahony, an analyst at Scope Markets.

Trump, who has been teasing the tariffs for weeks, is set to unveil them at 4:00 p.m. in Washington (2000 GMT), after Wall Street closes. Options reportedly range from reciprocal levies to a blanket 20% tariff, with potential exemptions for some nations. The announcement follows last week's sweeping 25% auto tariffs, set to take effect Thursday.

Tesla shares sank 5% after reporting a 13% drop in first-quarter sales, attributed to factory upgrades and customer hesitation over CEO Elon Musk’s ties to the Trump administration.

Economists warn the tariffs could slow global growth and drive inflation, reducing the likelihood of further interest rate cuts. Several countries have already threatened retaliatory measures, adding to market jitters.

Indian exporters are deeply concerned about potential reciprocal tariffs from the U.S., which could hit micro, small, and medium enterprises (MSMEs) hard, Federation of Indian Export Organisations (FIEO) President S.C. Ralhan said on Wednesday. He urged the government to step in and support exporters as they brace for the impact.

"Reciprocal tariffs in the range of 10% are manageable, but anything beyond that will have serious implications, particularly for MSMEs. These duties will have a short-term impact on India’s exports to the U.S. as both countries negotiate a bilateral trade agreement," Ralhan told PTI.

Sectors such as agriculture, precious stones, chemicals, pharmaceuticals, medical devices, electricals, and machinery could be affected if the U.S. imposes tariffs on Indian goods. Uncertainty over import duties has already led American buyers to hold back orders, he added.

President Donald Trump has framed the tariff move as a "Liberation Day" for the U.S., with the announcement expected early Thursday (India time).

Exporters warn that higher tariffs would lead to production cuts, job losses, and shrinking profit margins in Indian factories. Ralhan estimates India's goods exports for 2024-25 to be in the range of $435-440 billion, compared to $437 billion in 2023-24. The final data will be released by the commerce ministry on April 15.

Ralhan, who has over five decades of experience in exports, including in the engineering and hand tools industry, emphasized that the real impact of the tariffs could start showing in India's trade data for the first quarter of 2025-26.

US stocks fell on Wednesday as investors braced for President Donald Trump’s tariff announcement, which he has called “Liberation Day.” The move could significantly reshape global trade and the economy.

The S&P 500 dropped 0.9% in early trading, while the Dow Jones Industrial Average fell 220 points. The Nasdaq composite saw a sharper decline, slipping 1.4%.

Markets have been volatile throughout the week, often opening with losses but recovering by the day’s end. The uncertainty surrounding Trump’s tariff plans has added to the turbulence, with investors waiting to see the full scope of the new trade measures.

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Reciprocal tariffs are a trade policy mechanism where a country imposes tariffs on imports that match the tariffs its exports face in foreign markets. The concept is rooted in the idea of fairness: if one country charges high tariffs on imported goods, the affected country responds with equivalent tariffs on goods coming fr

om the first country. This approach aims to create a balanced trading environment by ensuring that no nation disproportionately benefits from lower trade barriers. For example, if Country A imposes a 25% tariff on steel imports from Country B, Country B would respond by imposing a 25% tariff on steel imports from Country A. The goal is to discourage protectionist policies and encourage countries to lower their tariffs through negotiation.

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Trump has long championed tariffs as a solution to trade imbalances, despite economists warning that consumers will ultimately bear the cost. Critics argue that higher import prices could fuel inflation and push the economy toward recession.

Global markets have been on edge, while targeted nations have called for talks even as they prepare for retaliation.

Allies and rivals respond

• Canada: Prime Minister Mark Carney vowed to defend Canadian workers and warned of potential countermeasures.
• European Union: Seeking negotiations but keeping "all instruments on the table" for retaliation.
• China, Japan, and South Korea: Exploring trade alliances to counter Washington’s moves.
• Mexico: Lowered its 2025 growth forecast due to tensions with its largest trading partner.

US President Donald Trump is set to unveil sweeping new tariffs on Wednesday, but the full scope of his "Liberation Day" trade offensive remains unclear. The measures, aimed at countering what he calls years of trade "injustice," could spark a global trade war.

Trump will announce the tariffs in the White House Rose Garden at 4:00 p.m. (2000 GMT), after Wall Street closes. Flanked by key cabinet members, he will argue that the new levies will stop America from being "ripped off" and usher in a "golden age" for U.S. industry.

Despite Trump's insistence that he has finalized the reciprocal tariffs, the White House admitted that he was still working out the details less than 24 hours before the announcement.

Early Wednesday, Trump posted a simple message on Truth Social in all caps: "It's Liberation Day in America!"

Hours ahead of Donald Trump's 'Liberation Day', his advisers were presenting options to him on Tuesday on how to go about the tariff thing as it involves a lot of countries and markets. Though Trump Monday announced that he settled on a tariff plan, one White House Official told CNN that they didn't believe Trump would arrive at a decision until hours before the 4 pm announcement today. Read full story

At the directive of Prime Minister Benjamin Netanyahu, Finance Minister Bezalel Smotrich and Economy and Industry Minister Nir Barkat, Israel has cancelled all of the customs duties - tariffs - that have been levied until now on products from the US, Israel's largest trading partner. After the approval of the Knesset Finance Committee and the Economy and Industry Minister's signature on the order, the amendment to the order regarding trade levies and protective measure will take effect and customs duties on all imports from the US will be cancelled. The US is Israel's closest ally and its most significant trading partner.

In 2024, the export of goods to the US stood at USD 17.3 billion, while the export of services was estimated at USD 16.7 billion. Israel's government explained that the 1985 free trade agreement with the US has led to the fact that the overwhelming majority (approximately 99 per cent) of goods imported from the US are already fully exempt from customs duties. Therefore, the reduction in customs duties will begin on a very limited number of products, in the category of imported food and agricultural products from the US. "The reduction in customs duties will, in effect, expand the US-Israel trade agreement and strengthen bilateral strategic relations," the Prime Minister's Office, Finance Ministry and Economy and Industry Ministry said in a joint statement. The reduction also entails an assurance to Israeli consumers in the form of a possible reduction in the cost of living with the anticipated expansion in imports of food and agricultural products from the US, which will benefit from a zero customs rate.

With US car tariffs set to take effect this week, Japanese auto parts maker Asahi Tekko is bracing for a tough hit. Company president Tetsuya Kimura has a direct plea for former US President Donald Trump: “Give me a break.”

Asahi Tekko, which employs 425 workers, is among the many companies in Japan’s auto sector—directly or indirectly employing 5.6 million people—that now face uncertainty. “There is no point in learning about this only two or three months in advance,” Kimura said from the company’s factory in Hekinan, central Japan.

The plant, located in Aichi—home to Toyota’s global headquarters—produces brake, engine, and transmission components. Toyota, the world’s largest automaker by sales, is a major customer. Autos have long been a key driver of Japan’s economy, with vehicles making up 28% of the country’s $142 billion in US-bound exports last year.

Mexican President Claudia Sheinbaum said Tuesday there will be no "eye for an eye" approach as the country braces for new US import tariffs kicking in this week.
The leader of the United States' biggest trading partner spoke on the eve of President Donald Trump's expected announcement of "reciprocal" tariffs, with 25 percent levies on imported cars and car parts.

Mexico has previously vowed a "comprehensive response" to Trump's tariffs, sticking to a strategy of prioritizing dialogue.

But Sheinbaum said Tuesday "we do not believe in an eye for an eye, a tooth for a tooth, because that always leads to a bad situation."

She added that "of course, measures are taken (in Mexico) because measures are taken on the other side, but the dialogue must continue."

Trump has said he will unveil a raft of so-called "reciprocal tariffs" Wednesday, on what he has dubbed America's "Liberation Day."

He insists the duties are necessary to combat trade imbalances with other countries.

With his small steel mill facing hefty US tariffs, Canadian businessman Chris Wyatt is hunting for new European customers at the world's biggest industrial technology fair in Germany.
"There's uncertainty in the markets so big projects are being shelved or they're just not moving ahead," said sales director Wyatt, handing out flyers at his stand, alongside big players in robotics and factory machinery.

This week's Hanover Fair, which has attracted more than 4,000 exhibitors from around 60 countries, takes place as US President Donald Trump gears up to announce a wave of "reciprocal tariffs", ratcheting up global trade tensions even further.

And this year's guest of honour is Canada -- a clear signal that Europe stands with Ottawa as it faces not just hefty duties from the United States, its largest trading partner, but also Trump's threats to annex the country.

With US President Donald Trump set to announce reciprocal tariffs later today, a report by Motilal Oswal suggests that its impact on India will be minimal.
However, it adds that despite India having the highest tariff differential of 9 per cent with the US among major nations, the reciprocal tariff impact will be only on 1.1 per cent of India's GDP, as India's exports to US in the six most vulnerable sectors amount to only 1.1 per cent of its GDP.

The report says "With a tariff differential of 9 per cent and assuming that the elasticity of India's exports to the US with respect to tariffs is -0.5 (implying a 1 per cent rise in the tariff rate would reduce India's exports to the US by 0.5 per cent), there will be a loss of USD3.6b in exports to the US, which is only 0.1 per cent of India's GDP (-0.5*9, 4.5 per cent fall in India's exports to the US)."

With tariffs on foreign-made cars kicking in Thursday, industry experts predict a 13.5% increase in vehicle prices, translating to an extra $6,400 on a new 2024 model. A typical American household is expected to pay an additional $500 to $600 annually due to rising costs on imported goods.

Trump, however, remains undeterred. When asked about concerns that his policies could drive up car prices, he dismissed them outright. "If the prices on foreign cars go up, they're going to buy American cars," he said.

Yet, given that nearly 50% of cars sold in the US are imported, and 60% of parts in domestically assembled cars come from abroad, the tariff plan may reshape the auto industry in ways even Trump has not anticipated.

With economic anxiety mounting, all eyes are on Washington as the new tariffs take effect, setting the stage for what could be one of the most consequential trade battles in recent history.