US President Donald Trump Sharp Plans to achieve exports from countries that he says have trade policies that are dishonest to the US.
On Thursday, Trump signed a memorandum that instructed the staff to develop custom tariffs for each country, taking into account features such as their existing tariffs, courses, trade states and other rules.
Having out of their concern, the White House said that the tariffs that have been imposed on other countries are not necessarily the biggest question, singing out the European Union for other policies that Trump’s administration has said to be US exporters in a disadvantage.
Although there are big questions about plans, the announcement is likely to start trade conversations around the world.
Which countries could influence?
The memorial signed by the President requested that the staff be registered for the plan for the “reciprocal trade and tariff” within 180 days.
The Store’s Secretary of the Howard Lutnick Store said his team would be ready to hand over the plan to the President by April 1.
Trump is a plan for the so -called reciprocal tariffs as part of his effort to bring investments in the US and reinforce production.
“If you build your product in the United States, no tariff,” he said, adding that “he just did what was fair.”
“In almost all cases, they charge us much more than we charge them, but these days are over,” he said. “That had to be done a long time ago.”
Like the European Union, Trump moves are expected to affect trade relations with countries such as India, Vietnam and Thailand, which have relatively larger tariffs and rely on the US as a large export market.
Trump has signed a letter before meeting with Indian Prime Minister Narendr Modi, who has already taken steps to reduce tariffs on key objects such as motorcycles, which Trump has made a problem during his first term.
In recent days, officials in Thailand and Vietnam have also said to have been reviewing trade with the USA.
On the eve of Trump’s announcement, the European Union announced that it was dedicated to “maintaining a close partnership with the US”.
“We will continue to look for constructive engagement,” said Olof Gill, a spokesman for the trade commission. “At the same time, we are ready to protect our interests.”
What are the reciprocal tariffs?
Tariff is an import tax that has been collected by the government. It is paid by a company that imports good.
The countries usually upright tariffs in an effort to protect certain sectors by competition.
Historically, they have now advocated free trade and retained most of their tariffs with low, except on certain products such as shoes and, more recently, Steel and Aluminum.
On average, the US has 3.4% of tariffs, compared to 5% with Europe, according to WTO.
In setting up their plans, the White House cited complaints on tariffs such as 10% taxes with which cars they made in Europe, compared to 2.5% of tariffs, are now applied to cars brought to the United States.
The White House also said that Brazil charges 18% of Etanol imports, while now they charge 2.5% of tariffs on the same product.
But officials made it clear that the US intended to use policies to challenge politics further, citing digital services taxes, many countries, including Canada and the UK, revealed against large technological companies – many of which are headquartered In the United States – like many with headquarters as European value added tax (VAT), a type of traffic tax.
What influence of tariffs can I have on the economy?
The announcement on Thursday comes after a series of moves with a new administration tariff.
Earlier this week, Trump ordered the US to start charging 25% of imported taxes on all steel and aluminum, which was brought to the country, ending the exemption for countries, including the European Union, the UK and Brazil. This should take effect next month.
He also raised the tariffs to all goods from China to 10% and threatened to hit imports from Canada and Mexico duties of 25%, which is a plan that has been put on hold until March.
Shares on Wall Street Rose after not announced immediate tariffs.
John Cassidy, Executive Director of the Red Cedar Investment Management, said Trump’s series of tariff announcements for fast fire had a nervous Wall Street, which “does not like unknown.”
But he warned of excessive response, noting that the tariffs had imposed Trump during his first term a relatively mild influence on the American economy.
“I think Trump plays a hand here and I think he has a very strong hand to play.” he said.
However, Alex Durante, an economist at the Tax Foundation, said he remained to see what changes could result in Trump’s moves.
He does not think that tariffs are the best strategy for dealing with trade complaints, given the costs and uncertainty they enter for US companies and retaliation risks.
“I think we are moving toward more and more tariffs with every next week and further escalation of a trade war with other countries,” he said.
He noted that in his first term, Trump had moved away from the Trans Pacific Partnership, a free trade agreement that was intended to resolve some of these same issues with Asia countries.
“They were open to it without having to spend now through more trade uncertainty,” he said.
Trump has rejected concern about damage to the store, saying that his plans will increase production in the US in the long run.
“What will increase is that jobs will go up,” he said. “Prices could rise a bit in the short term, but prices will also fall.”
But the polls indicate that the US public will remain concerned about the costs of life and unattainable because of the advantages of tariffs, for which economists have warned that they are likely to lead to higher prices for US companies and households.
A recent survey of Marquette Law School has found that only 24% of responsibility will believe that tariffs will help the American economy, including just under half of the Republicans and only 12% independent and 4% of Democrats.
“The question is whether these tariffs will lead to greater inflation, higher costs of goods,” said Charles Franklin, a poll director. “The argument of fairness is probably a good argument for the president, but the effect on the price is much more difficult to sell.”
Reporting contributed to this Espiner
