In response, both Canada and Mexico have announced retaliatory tariffs on key US industries, while Trump has vowed to impose âreciprocal” tariffs on âeverybody across the board.” Also Read: Truth or dare: Close the deficit in clarity over the impact of Trumpâs tariffs Since no other country wields as much influence over the world economy…
It is estimated that a car has some 30,000 parts (counting everything from its engine block to nuts and bolts). The firm that provides a carâs marque (like Dodge or Toyota) manufactures only a fraction of these parts in plants spread around the world. Several intermediate parts like tires, windshields, seats and mirrors, plus hundreds…
At its most basic, a tariff is a tax or duty on an imported good or service. It can be on a single product, a category of products or applied on all imports from a specific country. In the first weeks of the new Trump administration, all these forms have been announced. For instance, Trumpâs…
Never mind that applying selective tariffs violates the Most Favoured Nation (MFN) rules of the World Trade Organization (WTO). If someone raises an objection, WTOâs dispute resolution mechanism is expected to deal with it. But that mechanism is broken partly because the US has blocked appointments to its appellate body. If pushed further, it is…
Zelensky: âIâm not playing cards. Iâm very serious, Mr President. Iâm very serious.” Trump: âYouâre playing cards. Youâre gambling with the lives of millions of people. Youâre gambling with World War III.” Donald Trump told Volodymyr Zelensky that the latter had no cards no fewer than five times in the last 10 minutes of their…
High-school physics textbooks tell us that the gravitational pull between two objects is determined by three factorsâthe weight of the two objects, the distance between them and a universal gravitational constant. The gravitational force is directly proportional to the mass of each object, while it is inversely proportional to the distance between them. This idea…
How are these disruptions likely to affect India? Three disruptive moves in particular need to be taken into consideration in this regardâon immigration, trade and tariff policy, and foreign policy. Also Read: Harsh Pant: Trumpâs foreign policy recast poses a challenge that India cannot avoid Attacking immigration was Trumpâs first major move. He had harped…
Might this be the year that stagflation returns to the US? It has been half a century: The last time the US economy had both excessively high inflation and unduly high unemployment was in the mid-1970s, with inflation rates reaching 12.2% in 1974 and unemployment at 8.5% in 1975. The new stagflation is unlikely to…
Game theorist Thomas Schelling once wrote that coercion depends more on âthe threat of what is yet to come than on damage already done.” He added that countries in conflict situations would want âan impressive unspent capacity for damage be kept in reserve.” Schelling wrote his classic works on strategy in the context of the…
The term âshock and aweâ is usually attributed to George W. Bush, who purportedly used it to describe the US Armyâs prodigious and forceful ability to initiate regime change, before deploying it in Iraq almost 22 years ago. In reality, the term made its appearance first in a 1996 Pentagon briefing to paint a picture…
