GM Trendy Hiverzzz, Tariffs and trade wars have been a topic of discussion in recent years, as they have a direct impact on economies and global politics.
So now the question is, is it just a topic of buzzwords? Absolutely not, but it has a significant impact on the country's economy, and not only this indirectly, but it also affects the daily lives of ordinary people. So it should be broken down.
First, let's understand what is tarrif so it is a kind of tax imposed on goods imported from another country. It is all about making foreign services and products expensive so that people are forced to use country services and products rather than other countries.
In such situations, consumers find alternatives to products and services that are available locally, cheaper, and made in their own country. As you can see, this tax is to protect local businesses, small and big industries, and jobs, but reality is different.
A trade war is totally connected to tariffs because, in this situation, countries impose tariffs on each other. And a trade war is not a good thing at all.
Here, let's understand from the example, so there is steel that the US imports from Russia, and the US imposed a tariff on that steel, so in retaliation, Russia might impose a tax on beauty products imported from the United States.
This is uncertainty, and because of this, businesses have to face loss.
I feel pity for the consumer in such a situation because, let's say, a tariff has been imposed so the company will recover losses from consumers. All the burden will come on buyers.
If the tariff is imposed on beauty products, the price of beauty products will skyrocket.
Let's say Saudi Arabia imposes a tariff on oil for India, the price of petrol, diesel will skyrocket in India. So this should not happen between the countries because here consumers become the scapegoats.
To protect the consumer rights, there are strict rules needed on tariffs because this tariff war is affecting so many people. Tariff wars also impact traders who are trading in crypto, the stock market, and forex.
Consumers face consequences because of this situation. Salam namaste, take care.
"Dream is not that which you see while sleeping, it is something that does not let you sleep." - Avul Pakir Jainulabdeen Abdul Kalam 💪
