WASHINGTON (Diya TV) — President Donald Trump’s broadstroke new tariffs, including a 26% tax on Indian imports, have caused an enormous debate and raised alarm over increased consumer costs within the United States. In a White House Rose Garden address on April 2, the “Liberation Day” tariffs levy taxes between 10% and 49% upon imports from 60 countries, ranging from China, the European Union, India, and Taiwan.
Trump presented the action as a “declaration of economic independence,” contending that the tariffs would offset unfair trade practices and support domestic industries. “We will be charging them roughly half of what they are and have been charging us,” Trump stated. “I could have done that, I suppose, but it would have been difficult for many countries.”
But Indian American Democrats in Congress, along with economists and business executives, have sounded the alarm about potential economic consequences.
Rep. Shri Thanedar (D-Michigan) condemned the tariffs, explaining that they would raise costs to American consumers and put diplomatic relations under pressure. Rep. Ami Bera (D-California) also echoed similar sentiments, stating, “This is essentially a tax increase on American families.”
Rep. Raja Krishnamoorthi (D-Illinois) emphasized that the tariffs would harm working-class Americans while enriching the richest people. Virginia Representative Suhas Subramanyam cautioned against a potential trade war with India, noting the significance of U.S.-India economic relations.
The April 6 and subsequent April 9 increases will affect industries including semiconductors, drugs, and critical minerals. Chinese goods, which already bear tariffs under fentanyl-related sanctions, will be charged at 54%. The European Union is hit with a 20% tariff, while Canada and Mexico will have to honor the United States-Mexico-Canada Agreement in order not to incur a 25% tariff.
Markets reacted forcefully, with Dow futures falling 900 points in evening trading. S&P 500 and Nasdaq 100 futures fell more than 3%. Global supply-chain dependent companies, such as Apple, Nike, and Walmart, had their stocks fall.
Some international leaders threatened counteractions. Mexican President Claudia Sheinbaum intends to announce an economic countermove, and Canadian Prime Minister Mark Carney stated that the tariffs “fundamentally alter the international trading system.” The International Chamber of Commerce threatened the global trading system with systemic risk.
Small businesses fear escalating costs. Benjamin Colvin, co-founder of Devil’s Foot Brewing in North Carolina, noted that prior steel and aluminum tariffs had already raised production costs. “This is going to be expensive, and we’ll have to make tough decisions,” Colvin said.
With foreign retaliation looming and domestic opposition growing, Trump’s tariff plan has introduced fresh uncertainty into the global economy.
