Gets the imageUS President Donald Trump plans to sharpen exports from countries that, he said, have a trade policy that is unfair to the United States.
On Thursday, Trump signed a memoir, which instructed employees to develop custom tariffs for each country, given functions such as their existing tariffs, exchange rates, trading residues and other rules.
Having stated its problems, the White House stated that tariffs imposed by other countries were not necessarily the biggest problem, nominating the European Union on another policy, which the Trump administration stated that they had put US exporters in an unwanted position.
Although big issues remain about plans, this will probably start trade talks around the world.
Which countries can affect?
The note signed by the President was asked to report the “return trade and tariffs” plan for 180 days.
Trump’s choice for Trade Secretary Howard Lutnit said his team would be ready to pass the plan for the president by April 1.
Trump told his plan for the so -called mutual tariffs as part of his investment efforts in the US and increase production.
“If you build your product in the US, there are no tariffs,” he said, adding that “just doing what was fair.”
“In almost all cases, they charge us much more than we take them, but these days are over,” he said. “It had to be done a long time ago.”
The European Union is also allegedly, Trump’s movements will affect trade relations with countries such as India, Vietnam and Thailand, which have relatively higher tariffs and rely on the US as a big export market.
Trump signed a memo before meeting with Indian Prime Minister Narendra Modi, who has already taken measures to reduce the tariffs for key items such as motorcycles that Trump created the problem during the first term.
However, he promised mutual tariffs for Indian imports at a joint press conference on Modi on Thursday: “What India accused us, we take them.”
In recent days, officials in Thailand and Vietnam have also said they were considering trade with the United States.
On the eve of Trump’s announcement, the European Union said he was seeking to “support close partnerships with the United States.”
“We will continue to look for constructive participation,” said the Commission’s press secretary Olaf Gill. “At the same time, we are ready to defend our interests.”
What are the mutual tariffs?
The tariff is the import tax collected by the government. It is paid by a company that imports good.
Usually, countries are raising tariffs, trying to protect certain sectors from foreign competition.
Historically, the US is in favor of free trade and supported most of its tariffs, except for certain products such as shoes and, recently, steel and aluminum.
According to WTO, the US has an average rate of 3.4% compared to an average rate of 5% in Europe.
Laying its plans, the White House referred to objections with tariffs such as the 10% tax faced by US cars in Europe, compared to the 2.5% tariff used by the US cars in the US.
The White House also stated that Brazil charges 18% of ethanol import tariff, while the US charges the tariff by 2.5% on the same product.
But officials have made it clear that the United States intends to use tariffs to challenge the policy further by citing digital services in many countries, including Canada and the UK, presented against large technology companies – many of which are based in the US as well as in the United States as well as in the US, and The US – also in the US – also in the US – also in the US – as well as in the USA, as well as in the US as well as in the US, as well as in the US, many of which are founded in the United States. As the rules of Europe on value added tax (VAT), a kind of sale tax.
Such questions also raise the risk to the UK.
Duncan Edwards, CEO of the British Business, a group representing transatlantic firms, said Trump’s plans “should not become unexpected” and details of how any mutual tariffs are calculated.
“Our hope on the British business is that the relatively open market in the UK and balanced trade with the US gives the opportunity to avoid great influence of this policy, but nothing should be taken for granted,” he said.
What impact can tariffs on the economy have?
The announcement on Thursday comes after a number of tariffs related to the new administration.
Earlier this week, Trump ordered the United States to start collecting 25% of import tax on all steel and aluminum, brought to the country, stopping exceptions to countries, including the European Union, the United Kingdom and Brazil. This should take effect next month.
He also raised tariffs for all goods from China up to 10% and threatened to get into imports from Canada and Mexico with duties 25%, a plan that was delivered until March.
Stock on the Wall Street Rose after no urgent tariffs were announced.
John Cassidi, Red Cedar Investment Management, said that, as part of Trump’s rapid fire, Wall Street was “unmatched” as part of Trump’s rapid fire tariff.
But he warned from excessive reaction, noting that the tariffs that Trump had imposed during his first term had a relatively easy impact on the US economy.
“I think Trump plays his hand here and I think he has a very strong hand,” he said.
However, Alex Durant, an economist of the tax fund, said they could see what changes could arise as a result of Trump’s steps.
He does not believe that tariffs are the best strategy for combating trade complaints, given the costs and uncertainty they make for US firms and the risks of revenge.
“I think we turn to more and more tariffs with each next week and further escalation of the trade war with other countries,” he said.
He noted that Trump came from the Trans Pacific Partnership in his first term, a free trade agreement that was designed to solve some of the same problems with Asia.
“They were open to this without transferring the United States through a large trading uncertainty,” he said.
Trump has rejected concern about the regulation of economic damage, saying that his plans would increase the US production in the long run.
“What will go up is the jobs will grow,” he said. “Prices can increase several short -term, but prices will also decline.”
But polls show that the US remains concerned about life costs and is not convinced of the preferences of tariffs that economists are most likely to increase prices for US business and household.
A recent survey of the Markett law school showed that only 24% of respondents believe that tariffs will help the US economy, including just under Republicans and only 12% of the independent and 4% of the Democrats.
“The question is that these tariffs will increase inflation, higher costs of goods,” said Charles Franklin, director of the poll. “The justice argument is probably a good argument for the president, but the impact on prices is much more difficult to sell.”
Reporting made by Tom Espiner
