President Trump announced reciprocal tariff policies for U.S. trading partners.
Nigeria News Nalin The report said that U.S. President Donald Trump unveiled a new policy to impose reciprocal tariffs on all U.S. trading partners to ensure they receive the same tariffs imposed on them by the U.S..
The policy aims to restore fairness and prosperity in the trade system, which Trump describes as previously complex and unfair.
Trump stressed in a statement on Monday that countries can increase the competitive environment by reducing or eliminating tariffs on the United States if they believe that U.S. tariffs are unfairly high.
“For fair purposes, I will charge reciprocal tariffs, which means that no matter the country charges the United States, we will charge them – no more, no more!” Trump said.
He further explained that the policy would consider countries that use the VAT system (what he calls punitive tariffs, all similar to tariffs. “It is unfair to send goods, products or any other country through another country” to another country. The damage will not be accepted.”
In addition, the policy will take into account subsidies provided by countries to take advantage of the U.S. economic advantages, as well as non-monetary tariffs and trade barriers that some countries impose mandatory restrictions on U.S. products or prevent U.S. businesses from operating.
“We are able to accurately determine the cost of these non-monetary trade barriers,” Trump noted. “If a country thinks that the U.S. tariffs are too high, they can reduce or terminate tariffs on us.”
Exemption
Trump stressed that there will be no tariffs on products produced or manufactured in the United States. “For years, the United States has been treated unfairly by other countries, whether it is friends or enemies.
The system will immediately bring fairness and prosperity back to the previously complex and unfair trading system. ” he asserted.
Trump stressed the fiscal support the United States has provided to many countries over the years and called for fair treatment. “I have instructed my Secretary of State, Commerce, Treasury Secretary and the United States Trade Representative (USTR) to do all the necessary work to achieve our trading system,” Trump concluded..
Trump reiterated his commitment to fairness during the Oval Office signing the announcement. “It’s fair to everyone. No other country can complain,” he said.
What you should know
- The government believes that the new tariffs will balance the ability of U.S. and foreign manufacturers to compete, but under current laws, these new taxes may be paid directly or through higher prices by U.S. consumers and businesses.
- The rates charged will be studied in the next few weeks, which may create potential space to solve challenges or extend uncertainty.
- Scott Lincicome, a trade expert at the Cato Institute, pointed out that despite the low average tariffs in the United States, Trump’s announcement appears to be aimed at increasing taxes on imports rather than pursuing fairness. He pointed out that the United States also has regulatory restrictions on foreign products.
Trump’s announcement identified value-added tax (VAT), which is similar to the sales tax, common in the EU, as a trade barrier included in any mutual tariff calculation.
Other factors the Trump administration will use to assess tariffs include tariff rates in other countries, subsidies to the industry, regulations and possible undervalued currencies.
