What is Donald Trump’s ‘reciprocal’ tariff plan?

Donald Trump revealed the renovation of US trade with many of his colleagues and allies, starting with what he has a “fair and mutual plan.”

The President signed a memorandum on Thursday, ordering his main advisers Come with a “comprehensive” approach In order to resolve the US trade deficit, raising tariffs mainly against taxes, charges, charges and subsidies that consider Washington to be unfair.

This step has been the last Trump Trading Hall in its first month and follows the threats to unleash Tariffs: New Treasures of North American Commercial Partners, as well as metal imports.

What are the “mutual” tariffs?

In June 2023, Trump promised that if he wins the election, he would hold a law through Congress, allowing us to meet other countries with imports of US goods. His campaign charged this as “eye eye, tariff tariff”, the same exact quantity. “

The approach taken was broader. Officials say that the issue of “country’s country” will impose charges, answering non-tariff barriers. They singled out the value of the EU as an example of unfair trade, along with digital services taxes, which were studied or implemented by many European countries.

Everett Eissenstat, the former foreign trade representative now in Squire Patton Boggs, says that the restrictions on the weight of cars can be at intersections.

The program of the White House Factor says that the United States is “one of the most popular economies in the world,” he said that his trading partners “keep their markets closed to our export.”

The US program will violate the rules of the World Trade Organization, as members must offer the same pace until they sign a bilateral or regional trade transaction.

Prior to the United States, it has been suspended for the WTO rules, moving to a reciprocity system would mean a sharp removal for Washington’s trade policy.

It would also be different from the approach that Trump has adopted for metal trade, in which the United States has set a 25 percent tariff a blanket.

Which countries and products are most likely to suffer?

The senior official said on Thursday that Japan, India and the EU were the biggest targets of new events, while the White House was added to Brazil in the list.

“Japan has relatively low tariffs, but high structural obstacles,” said the official. “While India. The highest tariffs in the world have a number of worlds. “

Property Manufacturing and Trade Adviser Peter Navark called on the EU VAT “Poster Baby” for funds, claiming that the EU was unjust to offered its exporters. EU countries charge VAT only on goods sold in the bloc, regardless of origin. The United States has no VAT, just state sales taxes.

Hotspent[It] He almost trifks the EU tariff on American exports, even because it is strongly subsidizing the EU’s exports, “Navar said.

Trump has previously complained about China, the EU and India, citing an analysis of the Prosperous American coalition, a tariff thinker-tank. Thursday, the White House said that India used 100% tariff on US motorcyclists, while the United States charges only 2.4 percent. He also said that the EU has blocked the import of crayfish from 48 states.

Based on tariffs, Morgan Stanley’s analysts India, Thailand and South Korea were most expensive to reckon them to risk it’s weighted average tariffs.

Morgan Stanley also found that Japan, Malaysia and the Philippines could be directed based on their high average tariffs. Barclays analysts added Indonesia and Vietnam to the list.

The EU could also suffer. It charges 10 percent of the car imports, while the United States charges only 2.5 percent. The cars make up 8% of the US exports.

According to the WHO, the US average trading tariff is 2.2%. In contrast, the average exchange rate of India is 12 percent and reaches 177 percent of oil, fats and oils.

Could the US tariffs go down as well?

On Thursday, the White House official said that the United States hopes to “have a discussion with the nations of the world on how the modern environment is.”

“The president is more than happy to reduce tariffs if the countries want to lower tariffs,” he said, but high tariffs are less than taxes than high tariffs.

Scott Lincicome, the figure-tank of the Free Market Institute, said that the reciprocal system will lead US tariffs from Europe, Mexico, Canada or Great Britain, where tariffs sometimes decreased.

“I skeptically that our tariffs, such as the 25% tariff on light trucks or clothes and shoes, will fall,” he said.

The United States is also a fruitful user of commercial protection tools, emergency measures that determine tariffs in special cases such as imports. Washington also ensures that some subsidies are available only to local companies and use regulatory standards to store foreign products.

“Many foreign peoples have defensive barriers to American goods, services and investments, but the United States is not sacred,” Lincikom said.

What did Trump do so far?

Trump used tariffs as a negotiating tool and a means of protecting the US industry and repeatedly driven against the country’s trade deficit. The procedure for making a mutual tariff plan comes next to other events, which often do not approach a mutual approach.

The president’s threats to impose tariffs in Canada and Mexico have been urging to rush to show Washington that they make meaningful efforts to ensure their limits and stim’s requirements.

Trump has also shown that he is ready to apply sharp tariffs to protect US special industries, confirming a blanket for 25 percent of steel imports and aluminum imports. Trump officials say no exceptions for any company or products.

He also threatened to impose 10% tariffs for all imports from China, a step that hits daily consumer goods.

In the next early actions, Trump conducted an investigation into his officials, unfairly taxes to US companies, the reason for the stable US trade deficit.

How will other countries answer?

Some countries are already operating. India has cut a certain import of the United States this month, including Harley-Davidson Motorcycles, a long trump card, which he called “unacceptable”.

Although India is one of the best buyers in the world in Russia, Trump said that the United States will be a leading provider of India at a press conference on Thursday.

He added that he and the fashion were negotiating trade “long-term difficulties.”

Financial times report that EU officials will be ready to leave US tariffs at US levels if it avoid punitive actions against its exports. Brussels explicitly said that she wanted to buy more liquefied natural gas to us.

It is unknown at this time what he will do after leaving the post. No other trading partner has raised such a threat.

EU officials told FT that they did not believe that the alliance would change its regime under US pressure. It successfully defended the system In the 1990s against the US events in the WTO.

So far, the EU has promised “strong and proportionate” revenge on steel and aluminum tariffs, while the United Kingdom says it is unlikely to answer, without wanting to burn inflation.

On Monday, China answered the US tariff, with limited counterattacks that affect the US imports of about $ 14 billion. But its rhetoric was also relatively restrained compared to the first round of Trump’s trade war.

“There are no winners in a trade war or tariff war,” said the Chinese Foreign Ministry. “We urge the United States to stop politicizing and weapons economic and commercial issues.”