Washington, USA — United States President Donald Trump escalated his trade war on Wednesday by imposing a 10% global tariff on all imports, an increase rate of 34% for China and 20% for European Union products.
Trump decided instead to relieve Mexico and Canada, his main trading partners, by again postponing the imposition of tariffs on Mexican and Canadian products protected by the Agreement between the US, the United Mexican States, and Canada (USMCA).
“This is one of the most important days, in my opinion, in American history. It’s our declaration of economic independence,” the president said at the White House Rose Garden, surrounded by manufacturing workers.
The Republican leader, who has been calling the tariffs unveiling, the “liberation day” for weeks, gave details of the expected raft of tariffs he will impose in retaliation for barriers to US exports worldwide.
The global baseline tax will be 10%, although the US will sum up an additional tariff for those nations or economic blocs Washington deems the “worst offenders.”
Higher rates for Asia and Europe
The US will impose additional tariffs on very important trading partners of US companies: 34% on imports from China (currently at 54%), an additional 20% on the EU, and 24% on Japan.
Taiwan, a key semiconductor partner, will see a 32% increase; India, 26%; South Korea, a powerful exporter of cars or electronics, 25%; and Israel, 17%.
“You know, you think of European Union very friendly. They rip us off. It’s so sad to see it’s so pathetic,” Trump said.
The US president stressed that his tariffs were “friendly” in nature, as they were half of what the White House calculates each nation averages on US imports.
He showed a table that included 10% tariffs for several Latin American countries, including Argentina, Brazil, Colombia, Chile, Ecuador, Guatemala, Honduras, Peru, the Dominican Republic, and Costa Rica.
These countries will therefore only be subject to the 10% minimum imposed by the US.
Other Latin American countries will be subject to higher tariffs, such as Venezuela, which will pay 15% to export to the US, and Nicaragua, an exporter of gold and clothing to the US, at 18%.
According to a press conference with senior US officials, the minimum tariff of 10% will come into effect on Apr. 5, while the additional part affecting each country will be applied from Apr. 9.
Trump declared a “national emergency” to impose these tariffs, saying the current trade situation poses a security risk to the US, officials said.
Mexico and Canada dodge tariffs again
Mexico and Canada, which Trump has been threatening for months with tariffs in retaliation for the fentanyl trade and the flow of migrants, do not appear in the table presented by the Republican.
At the end of the event, the White House announced it was extending the imposition of 25% tariffs on imports from Mexico and Canada protected by the USMCA, which includes everything from agricultural products to auto parts and certain types of machinery.
Taxing these products would effectively spell the death of the trade deal that Trump signed in his first term.
Since his return to the White House on Jan. 20, the Republican has used tariffs as a bargaining chip with other countries.
On Wednesday midnight, for example, a 25% tariff will be imposed on all cars and car parts manufactured outside the US, except for auto parts made in Mexico and Canada.
Trump argued that the tariffs would cause companies to move production to the US, creating jobs, yet the tariff increases do not take into account poor or small nations with fragile economies or vulnerable to US giants.
Warnings from economists that such a policy could lead to higher prices for US consumers were dismissed by the New York tycoon.
On Wednesday, the White House invited steel and auto workers, as well as farmers and craftspeople.
Brian Pannebecker, a retired autoworker from Michigan, took the floor and said: “My entire life I have watched plant after plant after plant in Detroit and in the Metro Detroit area close. There are now plants that are underutilized, and Donald Trump’s policies are going to bring product back into those underutilized plants.”
SOURCE : EFE. | Follow Us: Facebook | Instagram | Twitter | Youtube |
