A 100% tariff on all goods from India and China, as proposed by President Donald Trump, would trigger economic fallout on a scale rarely seen. If the EU were to join the US in this action, it would disrupt global supply chains, cause massive price inflation for consumers, and likely plunge the world into a severe recession.
The stated goal of the policy is to force Russia to end the war in Ukraine by crippling its key economic partners. However, the collateral damage from such a move would be immense. Industries from electronics and automotive to textiles and pharmaceuticals would be thrown into chaos as they scramble to find alternative sources for components and finished goods.
For consumers in the US and Europe, the price of everyday items would skyrocket. The two targeted nations are the world’s factory, and a 100% duty on their products would effectively double their cost overnight, fueling an inflationary crisis.
While the administration is pushing for this high-risk strategy due to frustration with the war, it is also facing a domestic legal battle that could render the discussion moot. The Supreme Court’s upcoming ruling on tariff authority will decide if this tool of massive economic disruption remains in the President’s hands.