Tariffs trauma

The tariff wars between the USA, Canada, Mexico and China will make products more expensive for the ordinary people in these countries. Tariffs of 15 to 25 per cent cannot be absorbed by the exporting countries or the importers or their agents.

The importers will pass on the additional levies to the consumers in terms of higher prices. Eventually, products at the shops or supermarkets will become expensive by 25 per cent or more. Then, the poorer consumers will be compelled to cut purchases and consumption.

Many Western countries are already reeling from inflation. The new levies will further fuel the inflationary spiral. It will add to the woes of the poor. The world has become very stratified, between the upper-middle classes and the rich, versus the poor.

The affluent classes do not even know the price of milk, bread, butter or cauliflowers. However, the poor are hurt by every increase in prices. They feel the impact if the price of flour or cooking oil increases by even five per cent.

Therefore, any blanket increases in tariffs by countries, can severely depress consumption among the lower-middle class and the poor.

Rajendra Aneja,

Mumbai, India