Trump’s tariff can have a big impact on the diamond business
Trump’s tariff can have a big impact on the diamond business because Surat in Gujarat is known for cutting and polishing diamonds in the world, but now the people dependent on this industry are in trouble. The 50 percent tariff imposed by America has put the traders as well as the workers of this region in a lot of trouble. More than 25 lakh workers associated with the diamond industry are troubled.
50% tariff By America.
The impact of America’s 50 percent tariff on India is being felt most on this sector because Surat’s diamond industry is dependent on exports to America. If the tariff is not reduced, many traders will be out of the diamond industry, many people will lose their jobs and there will be a severe recession. US President Donald Trump has presented a comprehensive global program of tariffs, and has threatened to impose many more tariffs.
Import Export Tariff
What is a Trump’s tariff and how is it imposed?
Tariffs are taxes imposed on goods bought from other countries. They are a percentage of the value of a product. A 10% tariff means a $10 product will be taxed at $1 – making the total cost to the importer $11 (£8.20). This puts companies in a loss. Companies that import foreign goods into the US have to pay taxes to the government. And by passing on some or all of the cost to customers, companies may decide to import fewer goods.
Why did Trump use tariffs?
Trump’s tariff move is to make America more powerful. Trump says tariffs will encourage American consumers to buy more American-made goods, increase tax amounts and boost investment. He believes the US has been taken advantage of by “traitors” and “looted” by foreigners.
But diamond industry organizations like Surat Diamond Association and South Gujarat Chamber of Commerce believe that the US tariff will cause some slowdown but the situation will improve with time.
Big impact on diamond business in Surat.
Big impact on diamond business in Surat…. Surat’s main industry is textile and diamond, so the biggest impact is going to be on the diamond industry. There will be a huge impact on factories here as well. 20 to 200 workers work in many small factories in the city. The number of workers in many factories is up to 500. There are thousands of such factories in Surat. US President Donald Trump has imposed a 50 percent tariff on India. Trump first imposed a 25 percent tariff and an additional 25 percent tariff has come into effect from Wednesday.
Diamond business
The government will have to help
The government will have to help because if the government does not talk about this, then people are going to suffer a lot. And the Government of India should do something for its people very carefully. And this trump’s tariff should be considered.
What kind of tariff is reciprocal tariff?
The tariff imposed on India is very high but the US President says that many countries charge tariff many times more than them. Reciprocal tariff is because it is a kind of tariff in return for the tariff of the other country. It can also be understood as tax in return for tax. In a statement to the media, he criticized India for charging high tariff. If Donald Trump is to be believed, this reciprocal tariff has been imposed on those countries which have been charging high tariff from them for a long time.
Free Trade Agreement FTA?
Free Trade Agreement FTA You know about the Free Trade Agreement. Free Trade Agreement means that whichever country signs this agreement, they will not charge any kind of tax on trading with each other. A few days ago, there was a discussion about the Free Trade Agreement between India and Britain. In this way, taxes and tariffs are constantly increasing in the world, which needs to be controlled.
