Donald Trump promised to impose “reciprocal customs duties” to restore “equity” between Washington and the rest of the world. One more announcement, but without specific calendar.
It is a new escalation in the trade war open against the economic partners of the United States. Donald Trump announced Thursday, February 13,* that the United States would impose “Reciprocal customs duties” To restore the“equity” In trade relations between the United States and the rest of the world, without however giving a precise deadline.
“I decided, for the sake of equity, to apply reciprocal customs duties”Trump said in the oval office when the proclamation is signed. “It’s just for everyone. No other country can complain.” The Trump administration insists that new customs duties would equalize the capacity of the United States and foreign manufacturers to compete.
The price increases would be personalized for each country and intended to launch new commercial negotiations.
These new taxes would probably be paid by American consumers and companies according to economists, who believe that the plan could easily turn against Trump if its program increases inflation and slows growth.
The United States has low average customs duties, but Mr. Trump’s projects, as it is detailed in the decree, seem to increase taxes on imports rather than looking for equity.
The United States also has regulatory restrictions that limit foreign products, explains Scott Lincicome, trade in trade at the Cato Institute.
“This will inevitably result in higher customs duties, and therefore by higher taxes for American consumers and manufacturers,” he said. Mr. Trump’s tariff plan “reflects a fundamental misunderstanding of the functioning of the global economy”.
Mr. Trump’s plan aims to identify value added taxes (VAT) – similar to current sales taxes in the European Union – as a commercial barrier to be included to any reciprocal tariff. Customs prices, regulations and subsidies granted by other countries to various industries would also be among the factors that the Trump administration would assess during the determination of customs duties.
A senior Official of the White House, which required anonymity, told the Associated Press that the expected pricing revenues would balance the expected budget deficit of $ 1,900 billion (1.82 thousand billion of euros). He also added that the examinations necessary to apply customs duties could be completed in a few weeks or in a few months.
Any increases in imports on imports and exports could be significant in relation to the relatively modest customs duties imposed by Mr. Trump during his first mandate.
Last year, the volume of trade between the United States and the European Union amounted to almost $ 1,300 billion (1.24 thousand billion euros). Washington, however, exported nearly $ 270 billion (258 billion euros) less to the EU it imported, according to the United States census office.
Since his entry into office, Mr. Trump has openly put himself on the back of many trade partners of the United States in recent weeks, threatening to take customs duties. These measures have prompted certain countries to fight back by imposing their own import taxes, which could trigger a trade war.
In recent weeks, Mr. Trump has imposed customs duties in Canada and Mexico, the two main business partners in Washington, which he then suspended for 30 days after the two countries agreed to strengthen their borders with states -Unis.
He also imposed customs duties on Chinese imports due to the role played by the country in the production of fentanyl, an opioid, as well as a general customs right of 25 % on the imports of steel and aluminum in the country.
The EU, Canada and Mexico have prepared countermeasures in response to Trump’s actions, while China has taken retaliatory measures with its own customs rights on American energy, agricultural machinery and cars with large engines.
ADVERTISEMENTThe Trump team has swept criticism concerning their customs duties, while recognizing the probability of a certain financial pressure “At home”. Analysts from the American bank Wells Fargo believe that new plans are likely to harm American growth this year.
Mr. Trump attempted to minimize the potential consequences of his plans, saying that policies would only trigger “Brief inflation push“.
The President also refused to authorize agencies to analyze any repercussions on consumers, including price increases, declaring: “There is nothing to study. Everything will be fine.”
