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Donald Trump imposed a detailed plan on “reciprocity” on U.S. trading partners on Thursday, causing even greater damage to the global economy.
Trump has directed his top trade advisers to propose new tariffs on a “country-by-country basis” basis in retaliation for taxes, regulations and subsidies that Washington considers unfair.
White House officials and Trump warned that trading partners Brazil, India, Japan, Canada and the EU were at risk of additional tariffs.
But, an official said the government will review the U.S.’s biggest trade deficits, including Mexico and China, before collecting new taxes.
“For fair purposes, I have decided that I will charge reciprocal tariffs, which means whatever the state accuses of the United States of America,” Trump said. “In almost all cases, they charge us far more than we do Charge, but those days are over.”
Reciprocal tariffs could be imposed as early as April 2, which accelerated efforts by the global capital to negotiate with Washington to prevent its implementation.
The dollar weakened slightly on Friday against a basket of currencies including the euro and the yen, reaching nearly three-week lows. It has fallen more than 1% since the beginning of the week, while the 10-year U.S. Treasury yield has risen to 4.535%.
“Although global financial markets may tend to ease some relief from delays,” Barclays analysts said in a note published on Friday. “We are not clear whether delays must reflect a lower likelihood of ultimate imposition.” possibility.”
Trump’s latest tariff plan unveiled within a week, and he has made renewed efforts to end the war in Ukraine, calling on Russian President Vladimir Putin and Ukrainian President Vladimir Zelen Volodymyr Zelenskyy ended the war.
When he hosted Indian Prime Minister Narendra Modi, Trump criticized traditional American allies while appearing to expand the olive tree branch to strategic enemies such as China and Russia. Trump even invited Russia to rejoin the G7 wealthy country after being suspended for annexation of Crimea in 2014.
“It’s not a matter of liking Russia or not liking Russia,” Trump told the Oval Office reporter. “All you are talking about Russia, they should be sitting at the table. I think Putin would love to come back.”
Trump said he would include Kiev in any negotiations with Putin about ending the war. He added that he will hold additional talks with China and Russia on defense spending to lower the US $85 billion defense budget.
He said he thought the United States and China might have “a good relationship”, adding: “I think China is a very important player in the world, I think [Beijing] Can help us engage in this war with Ukraine and Russia. ”
The President has particularly pointed words about the EU, describing our long-time American allies as “very annoying.” He criticized the group’s VAT system, digital service tax and efforts to cut American tech companies in the court.
“The EU is very tough for our company,” Trump said. “They sued Apple, Google, Facebook, many other companies, and are American companies. . The court system there is not very good for our company,” he said. .”
At the White House meeting, Trump called Modi a “very special person” and talked about the “special bond” between India and the United States.
But he also criticized the high tariffs in New Delhi and announced measures to increase U.S. oil and gas and defense sales to India, aiming to reduce the deficit of more than $35 billion last year.
Trump said he and Modi will begin “negotiation to resolve the long-term differences that should be resolved in the past four years” with the aim of signing a trade agreement.
Trump’s reciprocal tariff plan will contradict many established global trade rules. White House officials said they could use different legal powers to implement reciprocal taxation, such as Section 301 of the Trade Act and the International Emergency Economic Powers Act, to circumvent Congress.
Trump said he intends to impose further tariffs on cars, chips and drugs “beyond” reciprocity tariffs. He has imposed a 10% tariff on all Chinese imports and will impose a 25% tariff on all imports of steel imports to take effect next month.
Other reports by John Reed
