Analyzing The International Trade Dynamics Under New Tariff Policy Of USA
- IJLLR Journal
- Oct 25
- 1 min read
Mohd. Kashif* & Shambhavi Patel*
ABSTRACT
The United States’ reciprocal tariff policy has significantly altered global trade dynamics directly affecting trade deals, developing and underdeveloped economies and the structure of international commerce. It has strained major agreements such as USMCA and WTO mechanisms, challenging the core ideals of free trade embedded in international economic law. Under its revised tariff regime, the U.S. has invoked domestic statutes like the International Emergency Economic Power Act of 1977, the U.S. has unilaterally raised tariffs on numerous imports, particularly targeting steel, aluminium, technology, and consumer goods. This has reduced market and economic challenges for underdeveloped economies, while major economies like China and India suffer from export constraints, currency volatility, and weakened investor confidence. The WTO, tasked with revolving disputes and enforcing global trade norms, is increasingly tested by U.S. unilateralism. Though the U.S. frames its tariffs as tools to protect domestic industries and cut trade deficits, the result has often been job losses in export-driven sectors and higher production cost, raising legal question of necessity and proportionality. In response, the affected countries have imposed retaliatory tariffs, often under safeguard or anti-dumping measures escalating trade friction and global supply chains. The analysis highlights the policy’s intended protection and its disruptive trade war effects, revealing the complex legal, economic and strategic factors driving trade amid rising protectionism.
Keywords: Reciprocal tariff, tariff regime, trade deficits, global supply chains, trade war, trade policymaking.
