ABSTRACT

Introduction: Tariffs certainly disturb the economy of every single state directly or indirectly and impact trade dynamics, which will erect trade barriers. The tariff policies will affect the GDP, whose impact will be witnessed by inflation in each sector. The word Trump and Tariff echoes unrest, and geopolitical relations and international trade will affect the American economy. By no means does the redressed of reciprocal tariffs have to be made so that bilateral trade agreements can run parallel and smoothly. The trade war could potentially lead to economic downturns in this era. This is not the era of war. Each nation needs the other nation because they rely on each other. There is a ruckus in the economy of almost every country that is facing tariffs and economic turbulence, which are being escalated.

Purpose: The paper defines pragmatism and the dilemma faced by the countries to which US President Trump has imposed reciprocal tariffs, and descriptive research methodology has been used by the researcher. The study aims to analyze the impact and effect of Donald Trump's tariff policy.

Method: The study used an expert group opinion survey among 250 respondents. The questionnaire has 15 questions.

Results/Outcome: The finding advocates that implementing increased tariffs is not the solution. The result of the study highlights that there is no long-term effect on the Indian share market and economy. The conclusion comes that in interconnected world; imposing tariff is not accepted as it widens unrest in the economy.