Off The Record
Donald Trump Announces New Tariffs That Could Start A Big Global Trade War
A’reciprocal tariff’ has been declared by US President Donald Trump on any nations who impose taxes on US products.
Donald Trump signed a startling 50+ executive orders as soon as he took office as the 47th President of the United States, albeit some of these have since been stopped.
Nonetheless, the White House posted an article yesterday, February 13, declaring “Reciprocal trade and tariffs.”
The article states that it is a written message intended for the following individuals: the Director of the Office of Management and Budget; the Secretary of the Treasury; the Secretary of Commerce; the Secretary of Homeland Security; the United States Trade Representative; the Assistant of the President for Economic Policy; and the Senior Counselor to the President for Trade and Manufacturing.
It claims that the US’s “workers and industries” are suffering “the brunt of unfair practices and limited access to foreign markets” as a result of “many years” of “unfair treatment by trading partners, both friend and foe.”
Aiming to make “trade more reciprocal and balanced,” Trump’s new policy introduces the “Fair and Reciprocal Plan” to “counter non-reciprocal trading arrangements with trading partners by determining the equivalent of a reciprocal tariff with respect to each foreign trading partner.” He labels the current state of affairs as “untenable” and threatens the US’ “economic and national security.”
In order to achieve this, the strategy would look at taxes levied on US companies, employees, and consumers in addition to “tariffs imposed on US products.”
And in a post on Truth Social, Trump reiterated the intention.
Trump wrote: “On Trade, I have decided, for purposes of Fairness, that I will charge a RECIPROCAL Tariff meaning, whatever Countries charge the United States of America, we will charge them – No more, no less!”
“For purposes of this United States Policy, we will consider Countries that use the VAT System, which is far more punitive than a Tariff, to be similar to that of a Tariff. Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted.”
Paul Ashworth, the senior North America economist at Capital Economics, told Sky News that if Trump regards VAT as a tariff, tariffs may reach 29 percent in India, 28 percent in Brazil, 25 percent in the EU, and possibly 24 percent in the UK.
Trump, however, believes that the policy is “fair to all” and that “no other country can complain.”
“In some cases, if a Country feels that the United States would be getting too high a Tariff, all they have to do is reduce or terminate their Tariff against us,” he said. “There are no Tariffs if you manufacture or build your product in the United States.”
He rallied: “America has helped many Countries throughout the years, at great financial cost. It is now time that these Countries remember this, and treat us fairly – A LEVEL PLAYING FIELD FOR AMERICAN WORKERS.”
It follows Trump’s earlier warning to impose a 25 percent import tax on all goods coming from Mexico and Canada.
But earlier this month, he put a 30-day hold on these taxes after Canada and Mexico responded with counter-tariffs of their own.
In order to safeguard Mexico’s interests, Mexican President Claudia Sheinbaum directed her economic minister to put policies in place, while Canada is slapping 25% tariffs on $155 billion worth of US imports.
What are tariffs?
Tariffs, which are taxes levied on goods from other countries, make it more expensive to sell many of these goods in the US, which eventually affects the customer.
After World War II, advanced nations lost popularity with tariffs because, according to the Council on Foreign Relations, they frequently resulted in “reduced trade, higher prices for consumers, and retaliation from abroad.”
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