We pay VAT on a daily basis when shopping and the most of us will not come to the head that the countries outside the Union treat it as a trade barrier that hinders them to enter our market. But it is so. Native manufacturers settle deductions from VAT, paying it in real terms only from added value, foreign cannot do it, because the costs settle at home. For them it is a balance of customs. In this context, according to the administration of Donald Trump, American duties are simply to equalize their chances. The US has noted a gigantic minus in mutual commercial turnover for many years.
Peter Navarro mentioned in a Monday interview the conditions that the EU would meet so that the US could reduce the duties imposed against her. As he noted, It is not enough for the Union to lower its own duties.
– I would say the EU that when you spend your ads (about answers to duties) or maybe […] Tell us that you will reduce your non -tariff barriers? – said the economist.
– Give up the 19 % VATrespect the WTO decision that we should be able to sell our corn and meat. You use export subsidies, you will rob Americans in all possible ways, So don't just say you will lower your tariffs. This is a small start, but other trade barriers are a much bigger problem. If you start talking about them, we can start talking – said Trump's adviser.
Read also: EU proposal for the USA. “Exemption from duties of industrial goods”
In a similar way, he expressed the offer of Vietnam authorities, which proposed the total abolition of duties in trade with the USA. Navarro argued that “frauds” rely on non -tariff barriers.
Trump is waiting for “great offers”
Another adviser to Trump, director of the National Economic Council Kevin Hassett, spoke in a similar tone in an interview with Fox News. He claimed that although Trump was convinced that the duties are acting, he was open to negotiations with partners, if they come to him with “with really great offers that will benefit American industry and American farmers.”
Trump himself suggested before the opening of the New York stock exchange that he did not intend to give up his policy even in the face of violent drops on the stock exchange.
– The United States has a chance to do something that should be done a decades ago. Don't be weak! Don't be stupid! Do not be panicars (a new party based on weak and stupid people!). Be strong, brave and patient, a The size will be the result! – Truth Social wrote on his portal. Less than an hour later, he informed that he was talking to “countries around the world”, including the Prime Minister of Japan, but puts hard conditions in these conversations.
– Raw but fair parameters are established. I talked with the prime minister of Japan this morning. He sends a team of experts to negotiate! They treat the US very badly in terms of trade. They don't take our cars, but we take millions of their cars. Similarly in the case of agriculture and many other “things”. Everything has to change, but especially in the case of China !!! Trump added.
After his words, the frequency of Futures contracts on Wall Street went sharply down, and the stock exchange recorded another opening in a deep minus. In the case of the DOW Jones index, it was over 3 percent.
Referring to the stock market inheritance, Navarro claimed that The stock exchange “tries to find the bottom”, To reflect from him and assure him that “he would end a year at 50,000 points” (the current course is 36.8 thousand). He also argued that the forecasts about the recession awaiting US is missed because Customs revenues will allow the Congress to adopt tax cuts.
