Page 51 - Banking Finance November 2025

ARTICLE

TRUMPeting

Tariffs

Jyoti Ranjan Mohanty
Chief Manager, Faculty
Union Bank of India
Zonal Learning Centre
Hyderabad

These new trade taxes are a challenge for India, but they also create some opportunities. By finding
new customers, making more things at home, and working with other countries, India can turn
this problem into a chance to grow stronger.

Introduction: pay more for your favourite products. Businesses that
use parts from other countries also have to pay more,
Imagine your favourite candy bar suddenly costing a lot
and they often pass those costs on to you.
more because the store owner added a special "extra fee"
for bringing it in from another place. That's kind of what's 2. Problems with Getting Stuff: Companies that get parts
happening with trade between countries, especially be- from all over the world might have trouble finding what
tween the United States and places like India. they need or have to pay more to get it. This can slow
down production and make things more expensive.
These "extra fees" are called tariffs, and they're like taxes
3. Countries Fight Back: When one country puts taxes on
on goods that come from other countries. The US has re-
another, the other country often does the same thing.
cently put higher tariffs on many things, and this is causing
This can lead to a "trade war" where everyone loses.
a lot of worry about how it will affect the world's economy,
including India's. This article will explain what these tariffs 4. Harder to Sell Things: If a country's goods become
are, how they impact trade, what they mean for India, and more expensive because of taxes, it's harder for them
what India can do to handle these changes. to sell those goods to other countries. This is especially
bad for countries that rely on selling their products to
How Trade Taxes Change the World: other countries.

When countries put taxes on goods from other countries, it
changes how businesses and people buy and sell things. A Quick Look at Recent Trade Taxes:
Here's how: The US has been using tariffs for a long time, but they've
1. Things Cost More: When taxes are added, the price of become more common recently. Here's a simple timeline:
imported goods goes up. This means you might have to 2018-2019: The US started charging more for steel and

46 | 2025 | NOVEMBER | BANKING FINANCE