US Tariffs Increase Deficits, Disrupt Global Trade Patterns

President Donald Trump's imposition of tariffs, including a recent hike on Indian goods raising the total to 50%, has sparked significant economic and geopolitical reactions. While tariffs are intended to protect American producers and raise revenue, experts argue they create tradeoffs between protectionism and tax efficiency, often leading to higher consumer prices and reduced trade revenue. India, affected by these tariffs, is urged to respond by bolstering domestic capacity, diversifying supply chains, and leveraging trade deals with the UK and EU to mitigate impacts on its export-driven MSMEs. The broader financial sector faces challenges from policy fragmentation, as tariffs, sanctions, and regulatory inconsistencies force firms to prioritize compliance over efficiency, exemplified by rising costs in auto repairs and construction due to tariffs. Additionally, the tariffs contribute to the growing U.S. federal budget deficits, with watchdog groups projecting that recent tax and tariff policies will push the deficit trajectory higher over the next decade. Critics also warn that these unilateral tariffs reflect a broader trend of expanding executive power with potentially harmful effects on American families and constitutional liberties.