Trump’s Tariff War: Why It’s Hurting Everyone | Opinion

Donald Trump’s tough tariff policy has started a trade war that’s shaking the world economy. On April 2, 2025, after Trump announced big taxes on imports, China hit back with a 34% tariff on all US goods, as per reports from *Live Mint*. The European Union also warned it might target US tech companies if talks fail. Even India is now talking to US officials to sort out this mess. But this fight is not just between big countries—it’s hitting common people, businesses, and stock markets everywhere, including India’s Sensex. Here’s why this trade war is bad news for all of us.

Prices Are Going Up

Tariffs are like extra taxes on goods coming from other countries. When the US puts tariffs on imports from China, Canada, or Mexico, things like fruits, toys, fuel, and electronics get costlier. Bloomberg says US shoppers will feel this pinch directly. In India, too, if global prices rise, our daily items could get expensive. Madhavi Arora, an economist from Emkay Global, told Live Mint that these tariffs might even cancel out the money the US hopes to earn because prices will shoot up and hurt company profits.

Businesses Are Suffering

Companies that depend on imported stuff—like raw materials or products—are in trouble. Their costs are going up, so they’re earning less. Arora warned that US firms might see smaller profits, and this could happen to Indian companies too if trade slows down. When businesses struggle, they stop hiring or even cut jobs. This means less money for workers and more worry for families.

Global Trade Is Slowing

When big countries like the US, China, and the EU fight with tariffs, trade between them drops. Other nations, including India, also get scared and pull back. Bloomberg reports that this could shrink the US economy by 0.3% this year instead of growing by 1.3% as expected earlier. If global trade falls, our factories, jobs, and businesses suffer too. India’s exports could take a hit if this continues.

Also read: Tariff titans: India and the US face off in a high stakes trade dance | Opinion

Stock Markets Are Falling

Investors hate uncertainty. With this trade war, rising prices, and recession fears, they’re getting nervous. The US stock market—like the Dow Jones and S&P 500—is dropping, and India’s Sensex is feeling the heat too. Why? People are pulling money out of shares and putting it into safer things like US government bonds. Bloomberg says the yield on these bonds fell below 4%, showing investors want safety over risk right now. Less money in stocks means prices fall, and that’s bad for anyone with savings in the market.

Recession Might Be Coming

Big banks like J.P. Morgan now say there’s a 60% chance of a global recession, according to *Bloomberg*. A recession means the economy slows down—businesses earn less, people lose jobs, and spending drops. US Federal Reserve Chair Jerome Powell told the media on Friday that this trade war could bring higher inflation *and* slower growth—a dangerous mix called stagflation. If the US falls into a recession, it’ll drag the world down with it, including India.

What’s Next?

Some experts think the US might cut interest rates to help the economy, but Powell says it’s too early to decide. This confusion is making things worse. Investors are running to bonds for safety, even if they earn less interest. Why? In tough times, keeping money safe matters more than making big returns. But for common people like us, this means higher prices, fewer jobs, and a shaky future.

My Take

Trump’s tariffs were meant to protect US industries, but they’re backfiring. They’re raising costs, hurting businesses, and spreading fear. India, too, can’t escape this storm—we’re part of the global economy. The government and experts need to act fast to shield us from this trade war’s fallout. For now, all we can do is watch and hope the big players sort it out before it’s too late.

Also read: 'Not gonna lose a trillion dollars for privilege of buying pencils from China': Trump justifies tariffs (WATCH)

(The author Girish Linganna of this article is an award-winning Science Writer and a Defence, Aerospace & Political Analyst based in Bengaluru. He is also Director of ADD Engineering Components, India, Pvt. Ltd, a subsidiary of ADD Engineering GmbH, Germany. You can reach him at: girishlinganna@gmail.com)