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Trump launches plan to target countries with ‘reciprocal’ tariffs

grey placeholderGetty Images A Reach Stacker holds a container at Packer Avenue Marine in Philadelphia, Pennsylvania, United States, on Wednesday, April 10, 2024. Gety pictures

US President Donald Trump is raising plans to export exports from countries that he says has unfair trade policies for the United States.

On Thursday, Trump signed a note of employees to develop a tariff for each country, taking into account features such as current customs tariffs, exchange rates, trade balances and other rules.

By defining his concerns, the White House said that the definitions imposed by other countries were not necessarily the biggest issue, as it classified the European Union for other policies that the Trump administration said the American exporters were in a non -favorable position.

Although big questions are still about plans, it is possible that the advertisement of commercial conversations around the world begins.

What countries can be affected?

The memo, signed by the employees, asked for the “mutual trade and definitions” plan within 180 days.

Trade Minister Howard Lootnick said his team would be ready to hand over the president’s plan by April 1.

Trump cast his plan for the so -called mutual definitions as part of his efforts to bring investment to the United States and enhance manufacturing.

“If you build your product in the United States, there is no tariff,” he said, adding that “he was doing what was fair.”

“In almost all cases, they ship us more more than we receive, but those days have ended,” he said. “It should have been done long ago.”

In addition to the European Union, Trump’s movements are expected to have an impact on trade relations with countries such as India, Vietnam and Thailand, which has a relatively higher tariff and depends on the United States as a large export market.

Trump signed the memo before a meeting with Indian Prime Minister Narendra Modi, who has already taken steps to reduce the definitions of the main elements such as motorcycles, which Trump clarified a case during his first term.

In recent days, officials in Thailand and Vietnam also said they are reviewing trade with the United States.

Before Trump’s announcement, the European Union said it was committed to “maintaining a close partnership with the United States.”

“We will continue to seek constructive participation,” said Olov Jill, the committee’s spokesman for the Trade. “At the same time, we are ready to protect our interests.”

What are the mutual definitions?

A tariff is a tax on imports gathered by the government. It is paid by the company importing goodness.

Countries are usually a tariff in an attempt to protect certain sectors of foreign competition.

Historically, the United States defended free trade and kept the majority of low definitions, with the exception of some products such as shoes, recently steel and aluminum.

On average, the United States has 3.4 %, compared to 5 % with Europe, according to the World Trade Organization.

Upon launching its plans, the White House cited objections to definitions such as the 10 % tax facing US -made cars in Europe, compared to the 2.5 % tariff that the United States applies to cars that were brought to the United States.

The White House also said that Brazil is 18 % tariffs at ethanol imports, while the United States is a 2.5 % tariff on the same product.

But officials have made it clear that the United States intends to use the customs tariff to challenge policies further, citing concerns about taxes on the digital services revealed by many countries, including Canada and the United Kingdom, against major technology companies – which many depend on the United States – as the rules of Europe for VAT (VAT), a type of sales tax.

What is the impact of definitions on the economy?

Thursday’s announcement comes after a series of movements related to the tariff from the new administration.

Earlier this week, Trump ordered the United States to start imposing an import tax of 25 % on all steel and aluminum that was brought to the country, and ending exemptions for countries including the European Union, the United Kingdom and Brazil. This is scheduled to enter into force next month.

The customs tariffs on all goods from China to 10 % also raised and threatened imports from Canada and Mexico with 25 % duties, a plan that was set until March.

Contributed to Wall Street Rose after any immediate tariff.

John Cassidy, CEO of Red Cedar Investment Management, said that the Trump’s quick ads series from the fast tariff ads was anxious Wall Street, which “does not like the unknown”.

But he warned against excessive interaction, noting that the customs tariff imposed by Trump during his first term had a relatively light impact on the American economy.

“I think Trump is playing his hand here and I think he has a very strong hand to play.” He said.

However, Alex Dorente, an economist at the Tax Corporation, said he continued to see what changes can be caused by Trump’s moves.

He does not believe that customs tariffs are the best strategy to deal with commercial complaints, given the costs and uncertainty they provide to American companies and the risks of revenge.

“I think we are heading towards more and more customs tariffs with every week to come and increase the escalation of a trade war with other countries,” he said.

He pointed out that in his first term, Trump moved away from a partnership across the Pacific, a free trade agreement that was aimed at addressing some of these same issues with the countries in Asia.

“They were open to doing this without the need to put the United States with more commercial uncertainty,” he said.

Trump rejected concerns about the side trade damage, saying that his plans would enhance manufacturing in the United States in the long run.

“What will rise is that the jobs will rise,” he said. “Prices can rise in the short term to some extent, but the prices will also decrease.”

However, investigative studies indicate that the American public is still concerned about the cost of living and is not convinced about the benefits of definitions, which economists are likely to lead to high prices of American companies and families.

A recent recent survey at Market College of Law found that only 24 % of respondents believe that the customs tariff will help the American economy, including less than half of the Republicans, only 12 % of independents and 4 % of Democrats.

“The question is that these definitions will lead to high inflation and the high costs of goods,” said Charles Franklin, reconnaissance director. “It is possible that the argument of fairness is a good argument for the president, but the effect of the price is very difficult.”

The reports that Tom Esbiner contributed

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2025-02-13 21:42:00

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