US President Donald Trump is sophisticated to reach the country’s exports, with unfair trade policies in the United States.
Thursday, Trump signed a note that instructs employees to develop customized tariffs for each country, taking into account the functions such as existing tariffs, exchange rates, trade balances and other rules.
The White House said that the tariffs imposed by other countries are not necessarily the biggest problem when summarizing concerns, and the Trump administration has caused the European Union for other policies.
There is a big question about the plan, but this announcement will begin trade talks around the world.
Which country can it affect?
The president’s signature requested employees to report the “mutual trade and tariff” plans within 180 days.
Howard Root Nick, Minister of Commerce Lutnick, said his team would be ready to plan to the president by April 1.
Trump has planned a so -called mutual tariff as part of his efforts to invest in the United States and increase manufacturing.
“If you build a product in the United States, there is no tariff,” he added. “We are doing fair work.”
“In almost all cases, they claim much more than we claim, but that time is over,” he said. “This would have been done a long time ago.”
Trump’s movements as well as the European Union are expected to affect trade relations with countries such as India, Vietnam and Thailand, which depend on the United States as a relatively high tariff and a large market for exports.
Trump signed a note before a meeting with Prime Minister Narendra Modi.
Recently, the officials of Thailand and Vietnam said they are also considering trade with the United States.
Prior to Trump’s announcement, the European Union said, “We are trying to maintain a close partnership with the United States.”
“We will continue to pursue constructive participation,” said OLOF GILL, a trade spokesman for the committee. “At the same time, we are ready to protect our interests.”
What is mutual tariffs?
Customs are taxes on income collected by the government. A company that imports the company pays.
The state generally has tariffs to protect specific sectors from foreign competition.
Historically, the United States has advocated free trade and has maintained low tariffs, except for shoes and certain products such as steel and aluminum.
According to the WTO, the US average tariff rate is 3.4%and is 5%compared to the average of 5%in Europe.
The White House cited opposition to tariffs, such as a 10%tax faced by the US in Europe, compared to the 2.5%tariffs applied to the US cars in the United States.
The White House also said that Brazil claimed 18%tariffs on Ethanol imports, while the United States would claim 2.5%tariffs on the same product.
But officials have made it clear that the United States is trying to challenge the policies that are farther by using tariffs, mentioning concerns about many countries, including Canada and the United Kingdom. A kind of sales tax as a European rules for VAT.
How can tariffs affect the economy?
Thursday announcements come after a series of tariffs in the new administration.
Earlier this week, Trump ordered the United States to end the exemption from countries, including the European Union, the United Kingdom and Brazil, to claim 25%of import taxes. It will be implemented next month.
He also raised tariffs on all products with 10%in China and threatened to earn imports in Canada and Mexico through 25%of his work, which is suspended by March.
Wall Street stocks rose after immediate tariffs were not announced.
John Cassidy, CEO of Red Cedar Investment Management, said Trump’s rapid tariff announcement was anxious and “I don’t like unknown.”
But he warned of over -reactions, pointing out that Trump’s tariffs imposed during their first term had a relatively gentle influence on the US economy.
“I think Trump is holding hands here and I think he has a very strong hand to play.” He said.
But Alex Durante, an economist of the Tax Foundation, said Trump’s movement could see what would happen.
He does not think that tariffs are the best strategy for dealing with trade dissatisfaction, given the costs and uncertainty and risk of retaliation for US companies.
“I think we are toward more and more tariffs every week, and trade wars with other countries are increasing,” he said.
He pointed out that in his first term, Trump was far from the transparative partnership.
“They were able to do this without placing the United States through more trade uncertainty,” he said.
Trump dismissed concerns about collateral trade, and his plan said he would increase the manufacture of the United States in the long run.
“The job to go up will go up,” he said. “The price can go up in the short term, but the price will fall.”
However, according to a survey, the US public is concerned about living expenses, and economists have no confidence in the benefits of tariffs that warn that US business and furniture prices will be higher.
According to a recent Marquette Law School poll, only 24 percent of respondents thought that tariffs would be helpful for the US economy, which is only half of the Republicans.
“These tariffs will increase inflation and higher commodity costs,” said Charles Franklin, director of the poll. “Fair debate is probably a good claim for the president, but the price impact is much more difficult.”
Reported by Tom espiner
