Trump launched a plan to target new tariff countries

US President Donald Trump is intensifying plans to hit exports from countries that say they are trade policies that are unfair to the US.

On Thursday, Trump signed a memorandum, which directed employees to develop custom tariffs for each country, such as taking into account the facilities such as their current tariffs, exchange rates, trade balance and other rules.

Underlining its concerns, the White House stated that the tariff imposed by other countries was not necessarily the biggest issue, excluding the European Union for other policies, the Trump administration said that American exporters were kept in a loss.

While there are major questions about the schemes, the announcement is likely to discontinue trade talks worldwide.

The memorandum signed by the President asked that the staff reports back to a plan for “mutual trade and tariff” within 180 days.

Commerce Secretary Howard Lutnik said that his team would be ready to submit a plan to the President by 1 April.

Trump planned for the so -called mutual tariffs as part of his effort to bring investment in the US and promote manufacturing.

“If you manufacture your product in the United States, there are no tariffs,” he said, saying that he was “just doing what was appropriate”.

He said, “In almost all cases, they are charging us, as we charge them, but those days are over,” he said. “It should have been done long ago.”

Along with the European Union, Trump’s steps are expected to affect trade relations with countries such as India, Vietnam and Thailand, which have relatively more tariffs and rely on the US as a large market for exports.

Trump signed a memorandum before a meeting with Indian Prime Minister Narendra Modi, who has already taken steps to reduce tariffs on major items such as motorcycles, which Trump made an issue during his first term.

In recent times, officials in Thailand and Vietnam have also said that they were reviewing trade with the US.

Next to Trump’s announcement, the European Union stated that it was committed to “maintaining a close partnership with the US”.

Commission spokesman Olof Gill said for business, “We will be looking for creative engagement.” “At the same time, we are ready to protect our interests.”

A tariff is a tax on imports collected by the government. This is paid by the company by a good importing company.

Countries usually manufacture tariffs in a bid to protect some areas from foreign competition.

Historically, the US has made free trade champions and kept most of its tariffs low, such as footwear and, recently, except steel and aluminum.

According to the WTO, the average tariff rate of the US is 3.4% compared to an average rate of 5% in Europe in the US.

In setting up its plans, the White House cited objections on tariffs such as 10% tax, which faces cars manufactured by America in Europe, applied to cars brought to America compared to 2.5% tariffs. .

The White House also stated that Brazil charges 18% tariff on ethanol imports, while the US charges 2.5% tariff on the same product.

But the officials clarified that the US has unveiled against large technical firms, citing concerns about digital service taxes in many countries including Canada and UK – many of which are US -based – as well, the US Digital service has intended to use tariffs to challenge concerns about taxes. As the rules of Europe, for the taxing tax (VAT), a type of sales tax.

Thursday’s announcement comes after a string of tariff-related tricks from the new administration.

Earlier this week, Trump ordered the US to implement 25% import tax on all steel and aluminum brought to the country, ending discounts for countries including the European Union, UK and Brazil. This is due to implementation next month.

He increased the tariff on all goods from China to 10% and threatened to import from Canada and Mexico with 25% of duties, a plan that has been stopped until March.

The shares on Wall Street rose after the immediate tariff was announced.

John Cassidi, Chief Executive Officer of Red Cedar Investment Management, said that Trump’s string of Rapid-Fire Tariff announcements uncontrolled the Wall Street, which “does not like the unknown”.

But he warned against the over-reaction, given that Trump had a relatively mild impact on the US economy of tariffs during his first term.

“I think Trump is playing a hand here and I think he got a very strong hand to play.” He said.

However, Alex Dumente, economist at Tax Foundation, said that it should be seen what changes can happen by Trump’s moves.

They do not think that tariff is the best strategy to deal with business complaints, given the cost and uncertainty, they introduce for the risks of American firms and vengeance.

“I think we are moving towards more and more tariffs with each coming week and to move forward with a business war with other countries,” he said.

He said that Trump went away from the Trans Pacific Partnership in his first term, a free trade agreement, which was aimed at addressing some of these issues with the countries of Asia.

“They were open to do so without putting America through more business uncertainty,” he said.

Trump has dismissed concerns about collateral trade damage, stating that his plans will promote manufacturing in the US for a long time.

He said, “What is going to talk is going to go up.” “Prices may be somewhat lower, but prices will also be reduced.”

But surveys indicate that the American public is concerned about the cost of life and is unrelated about the benefits of tariffs, which have been warned by economists that there is a possibility of leading high prices for American businesses and homes.

Recently, a Marwet Law School Poll found that only 24% of respondents believe that tariffs would help the American economy, which includes only half to half of the Republican and only 12% independent and 4% democrats.

Pole director Charles Franklin said, “The question is that these tariffs lead high inflation, high cost of goods.” “Fairness argument is probably a good argument for the President, but a difficult thing to sell value impact”.

Contribution of reporting by Tom Aspinner