Current Affairs - Economy

U.S. President Donald Trump has announced a 25% tariff on all steel and aluminium imports, effective March 4, 2025, with no exemptions for key exporters like Canada, Brazil, Mexico, and South Korea. The decision aims to boost domestic production and counter foreign dumping but has sparked a global backlash. Countries such as Canada and the European Union have condemned the move and are preparing retaliatory measures. This tariff reinstates Trump's earlier protectionist trade policies and could lead to heightened trade tensions and economic uncertainty in global markets.

Uttar Pradesh is formulating a new leather and footwear policy to enhance exports, provide financial aid, and introduce technological upgrades. The initiative aims to double the state’s ₹20,000 crore leather industry within five years, focusing on key hubs such as Kanpur, Agra, Unnao, and Noida. This policy aligns with the Union Budget 2025-26, which sets a target of $50 billion in Indian leather exports by 2030. By implementing this strategy, Uttar Pradesh seeks to strengthen its position as a major contributor to the country’s leather sector.

India has introduced new Harmonized System (HS) codes to facilitate the export of GI-recognized rice varieties such as Red Rice, Black Rice, and Kalanamak Rice. These codes help differentiate premium GI-tagged rice from general non-basmati rice, ensuring better market positioning and protection from export restrictions. The initiative aims to promote fair pricing, simplify trade processes, and strengthen India’s presence in global speciality rice markets. By assigning specific HS codes, India acknowledges the cultural and economic importance of these rice varieties while safeguarding farmers’ interests and boosting agricultural exports.

DPIIT (Department for Promotion of Industry and Internal Trade) of India signed a Memorandum of Understanding (MoU) with the Korea Transport Institute (KoTI) to enhance logistics and infrastructure cooperation. This partnership focuses on the PM GatiShakti National Master Plan, aiming to improve logistics efficiency through knowledge exchange, research-driven initiatives, and technology adoption. Strengthening bilateral ties with global institutions like KoTI helps India advance its logistics sector and adopt best practices from leading economies.

India is set to launch the EFTA Desk in New Delhi to enhance economic relations with the European Free Trade Association (EFTA). This initiative aligns with the India-EFTA Trade and Economic Partnership Agreement and aims to boost trade, investment, and business collaboration between India and EFTA member nations. The EFTA consists of Iceland, Liechtenstein, Norway, and Switzerland. By establishing this desk, India seeks to facilitate smoother economic interactions and expand its engagement with these European economies, fostering stronger trade partnerships and investment opportunities.