President Donald Trump ordered his administration to consider putting mutual tariffs on several business partners, increasing the possibility of a comprehensive campaign against a global system, complaining that it is bent against the US.
The President on Thursday signed a measure to direct the US Trade Representative and Commerce Secretary, which in an attempt to imbalance business relations-to propose a new levy on the basis of country-country-a comprehensive process that It may take weeks or months to complete. To lead the Department of Commerce, Trump’s nominated Howard Lutynik said that reporters said all studies should be completed by 1 April and Trump could work immediately after.
Fresh import taxes will be optimized for each country, it means not only to offset its own levy on American goods, but also non-tariff barriers that nations are unfair subsidies, regulations, value-added taxes, exchange rates And other factors are installed. To limit American trade, the Act said, who informed reporters before the announcement.
Trump said at the Oval Office, “I have decided, for the purposes of fairness, that I will charge a mutual tariff, which means that whatever countries charge in the United States,” Trump said in the Oval Office. . “In almost all cases, they are charging us, as much as we charge them, but those days are over.”
Trump told reporters that he would apply import taxes on cars, semiconductors and pharmaceuticals to a later date on mutual tariffs on “over and over”.
Trump’s instruction on the tariff was not immediately provided by the White House. Trump cited obstacles in the European Union, including a VAT, what the US wants to respond as an example, while the official said that Trump also excluded Japan and South Korea as a nation. Is, which believes he believes that he is taking advantage of America, and thus can be targeted in his latest push.
Reciprocal tariffs will be the amount of Trump’s extensive action to address the US trade deficit and is characterized by an inappropriate treatment of American exports worldwide. Trump has already imposed 10% tariffs on Chinese goods and plans to slap 25% of duties on all American steel and aluminum imports next month.
Nevertheless, the President’s decision to not implement the tariff of the nation can be seen as an initial bid for negotiation – after the same strategy he was already used to extract concessions from Mexico, Canada and Colombia after the same strategy. – Instead of a sign that he is committed to the following.
The official said that the President is hoping to discuss with other nations how the current policies have created an unbalanced trade environment, and if the country wants to filter its levy or to remove other business obstacles, then it is less Are more happy than tariffs.
After signing the instructions, Trump told reporters on Thursday, “This is a two -type road.”
But Trump said he did not expect to release exemption or exemption. He said that despite giving Apple Inc. a pass on tariffs on China during his first term to compete with Samsung Electronics Company Limited, this tariff package “applies to everyone across the board.”
Whatever happens, Trump’s Brinkmanship has injecting uncertainty in the global economy, waiting for businesses and consumers to see how Trump moves on the decision that America’s business relations with the rest of the world Can interrupt
According to Bloomberg Economics, mutual tariffs are expected to give a tough competition to low-developed economies, where average duties on American products are more. This is different from a universal levy on all imports, as Trump proposed during the 2024 presidential campaign. The official said Trump may later return to a global tariff strategy.
Trump announced his move a few hours before being set to host Indian Prime Minister Narendra Modi, whose country is influenced by mutual tariffs compared to several other major trading partners. Trump has repeatedly criticized India’s high tariff barriers.
Trump’s imagined tariff scheme width is breathtaking. It is probably also a large -scale logical venture for government employees in Commerce and USTR. Trump’s action opens the door to develop country-by-country analysis and to develop calculations for about 200 other countries, each contains thousands of tariff codes with his own tariff schedule. And this is not mentioned the challenge of calculating a value for other nations’ rules, fiscal policies and subsidy programs.
Trump has repeatedly targeted 15% of VAT of the European Union. There is also a VAT in Japan, known as consumed.
sea ​​change
Trump and his advisors have long argued that American goods face high tariffs and other trade obstacles, which come in the US compared to the products of other countries. With the move, their goal is to increase American obstacles to match other countries he says that America has taken advantage of.
If this is done, it marks a maritime change of how America attaches to trade and is one of the basic principles of the global trade system that the US gave shape after World War II.
As the world’s largest economy, the United States has long endangered access to its market as an incentive and has seen openness as an economic benefit. It also advocated that since the 1940s, known as the “most preferred nation” approach to tariffs guiding global trade rules. It assumes that all countries should treat business partners equally and provide them with the same access to their most preferred people where special-free-trade agreements have been signed.
Trump blamed the US bilateral trade deficit on unfair trade practices, conversation by his predecessors or combining both. He is particularly important for the European Union and he sees as an inappropriate treatment for American-made products, especially automobiles and agricultural commodities.
Most economists argue that the product of strong forces is more stronger than the mismatched tariff from the business deficit – they also reflect extensive macroeconomic factors such as consumption of American houses relative to those people, US dollar reserve currency status and US assets Globally hunger for.
