India's government is quickly looking for ways to respond. Prime Minister Narendra Modi spoke on India's National Day. He promised a "big Diwali gift" to the

Trump has announced a 10% baseline tariff on all U.S. imports, along with higher "reciprocal" tariffs on about 60 countries, including key allies and major trade partners like China (34%) and the European Union (20%). Whiter House press sec Leavitt says the 34% rate on China will be added to the current 20% rate for a total tariff of 54%. These measures mark a significant escalation in trade protectionism, reversing decades of trade liberalisation. Trump justified the move as a response to unfair foreign trade practices, including tariffs and non-tariff barriers that disadvantage American goods. However, Canada and Mexico, already subject to high tariffs, will not be affected further. The baseline tariff takes effect on April 5, while the higher tariffs will begin on April 9. Exemptions apply to certain goods like pharmaceuticals, semiconductors, copper, gold, energy, and critical minerals not sourced in the U.S. These actions have shaken global markets, with U.S. stocks losing nearly $5 trillion in value since February, and analysts warning of rising inflation and recession risks. While the Trump administration claims these tariffs will revive key industries, many businesses and economists fear long-term economic damage and increased consumer costs. * S&P 500 futures down 3.5%, testing the March low * Yen a big, big winner on Trump's tariff trade war announcement This article was written by Eamonn Sheridan at www.forexlive.com.