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PRESIDENT Donald Trump has vowed to unleash substantial global tariffs, throwing a grenade into the global trade system that could have major impacts on American consumers.
On Thursday, Trump announced plans to extract money from every country that taxes any American goods, including long-time allies, though he said he was open to negotiation.
He’s already announced plans to impose a 25% tax on Canada and Mexico and a 10% fine on China, but before this latest announcement, he warned, “Today is the big one.”
On Thursday, Trump signed a memorandum to reevaluate the tariff levels for every country that taxes the US, as he plans to match their numbers.
In addition to tariffs, he’ll also look at subsidies and trading behaviors that he believes are unfair before setting a new number, The New York Times reported.
“They charge us a tax or tariff, and we charge them the exact same tax or tariff, very simple,” he told reporters from the Oval Office.
“In almost every case they charge us vastly more than we charge them, but those days are over.”
Trump named a few countries that he believes are unfairly benefitting from trade with the US, including Japan, the European Union, and India.
He specifically took aim at value-added taxes, which are applied to almost every good and service bought and sold in the EU.
In a conference after signing the order, Trump admitted that prices in America would go up in the short term, but he believes they will balance out soon after.
He reminded foreign companies, “If you build here, you’ll have no tariffs whatsoever,” and predicted that America would see an influx of job opportunities.
The president said the US has been “treated unfairly by other countries, both friend and foe” but he now has hope for a brighter future.
“This system will immediately bring fairness and prosperity back into the previously complex and unfair system of trade,” he said on Truth Social.
“America has helped many countries throughout the years, at great financial cost. It is now time that these countries remember this and trust us fairly.”
Trump’s nominee for commerce secretary, Howard Lutnick, said tariffs could be in place as soon as April 2.
TRADE WAR
The tariffs have sparked an all out trade war across the world, with some international leaders bending the knee to delay Trump’s scheme.
Canadian Prime Minister Justin Trudeau and Mexican President Claudio Pardo have both agreed to strengthen their US border security so Trump would delay the tariffs until next month.
Trump’s full statement on tariff crackdown
“On Trade, I have decided, for purposes of Fairness, that I will charge a RECIPROCAL Tariff meaning, whatever Countries charge the United States of America, we will charge them – No more, no less!
For purposes of this United States Policy, we will consider Countries that use the VAT System, which is far more punitive than a Tariff, to be similar to that of a Tariff. Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted. In addition, we will make provision for subsidies provided by Countries in order to take Economic advantage of the United States. Likewise, provisions will be made for Nonmonetary Tariffs and Trade Barriers that some Countries charge in order to keep our product out of their domain or, if they do not even let U.S. businesses operate. We are able to accurately determine the cost of these Nonmonetary Trade Barriers. It is fair to all, no other Country can complain and, in some cases, if a Country feels that the United States would be getting too high a Tariff, all they have to do is reduce or terminate their Tariff against us. There are no Tariffs if you manufacture or build your product in the United States.
For many years, the U.S. has been treated unfairly by other Countries, both friend and foe. This System will immediately bring Fairness and Prosperity back into the previously complex and unfair System of Trade. America has helped many Countries throughout the years, at great financial cost. It is now time that these Countries remember this, and treat us fairly – A LEVEL PLAYING FIELD FOR AMERICAN WORKERS. I have instructed my Secretary of State, Secretary of Commerce, Secretary of the Treasury, and United States Trade Representative (USTR) to do all work necessary to deliver RECIPROCITY to our System of Trade!”
Source: Truth Social
But China President Xi Jinping hasn’t been as open to negotiations, as the global power sends hundreds of billions worth of goods to the US every year.
On February 4, the country imposed its own 15% duties on American coal and natural gas and a 10% tariff on crude oil, agricultural machinery, and large-engine cars.
Plus, Chinese officials are launching an anti-monopoly investigation into American tech company Google, which isn’t used as a search engine in the country but still maintains a presence through its advertising business.
This move has sparked tit-for-tat charges, and Trump is determined to come out on top.
On Wednesday, he announced that all US steel would come with a 25% tariff, sparking cries of outrage from leaders in Canada and Europe.
The president said, “This is a big deal, the beginning of making America rich again,” and added that the measures would be enforced on March 12.
Trump is specifically taking aim at China because he believes the country hasn’t done enough to stop the production of chemicals used to produce fatal street drug fentanyl.
But the Eastern nation claims that fentanyl is an American problem and refuses to take the blame for the tens of thousands of annual deaths.
As Trump continues to crack down on foreign nations, he’s confident that the American people will be happy with the results.
“I have instructed my secretary of state, secretary of commerce,. secretary of the treasury, and the united states trade representative to do all work necessary to deliver reciprocity to our system of trade,” he said.
Why has Trump hit China with tariffs?
DONALD Trump signed an executive order promising to hit Chinese imports to the US with a tariff of 10%. But, why did he propose the levies?
Trump believes China has not done enough to stop the production of chemicals used to make the drug fentanyl.
China has slammed Trump for the claim and described fentanyl as America’s problem.
The country also said the tariffs are a “serious violation” of the World Trade Organization rules.
China is therefore filing a lawsuit with the WTO against the US for “wrongful practice”.
China serves as a major supplier of auto parts to the US.
Phones and computers along with other key electronic devices were also in the top imports from China last year, according to Commerce Department Data.
In 2023, the US imported around $427 billion worth of products from China in total, according to the US Census Bureau.
Data reveals that 78% of all smartphones imported from the US came from China.
Trump’s tariff threat has sparked fears of price rises for fashion items and toys.
Beijing has responded by outlining its own tariffs on American goods, sparking fears of an all-out trade war between the two powerhouses.
