$ 30 billion additional duties revenues. America in a trade war

Additional revenues of the United States from customs in October 2024 – May 2025 amounted to $ 30 billion, by 61 percent. More compared to the same period of the previous budget year in the USA – said the Polish Economic Institute (PI).

Analysts of the Polish Economic Institute reminded in the PIE Economic weekly that at the beginning of July the deadline for negotiating US trade agreements with partners, which allow you to avoid the so -called mutual duties announced on April 2, and suspended on April 9 for 90 days.

They reported that American data for April 2025 indicate a decline in yards. Imports from China by 20 %, from Canada by 12 %, no changes from the EU and an increase in imports from Poland by 12 percent. “Although the US commercial deficit in April alone fell by 14 %, but in the period of January -April, due to increased imports to March, increased by 45 percent in annual terms” – they added.

The publication noted that The average customs rates on May 14, 2025 reached 51 percent. for China and 11 percent For the rest of the world, although in the meantime up to 50 percent Dutch and aluminum were also raised.

“On the other hand, revenues from customs duties (by USD 30 billion – 61 percent) increased clearly in October 2024 – May 2025 in relation to the same period of the previous budget year in the US” – emphasized the authors of the publication.

Pie experts pointed out that in April this year, in response to duties' increases, Beijing decided to introduce restrictions on the export of rare lands (Ree). “This is a group of seventeen elements that are widely used in advanced technologies – from electric cars to armament systems or renewable energy,” they reminded.

“It is estimated that 80-90 percent of the REE market and 25 % of mining applies to permanent magnets used, among others, in EV engines or wind turbines. For their production, neody, prazeody, disroach and terb China are a monopolist in the production of permanent magnets, responsible for 92 percent of world production,” they said.

Economists assessed that in view of China's necessity for American industry, Donald Trump may look for his position as a strong leader in escalation with other partners. “It cannot be ruled out that the administration will decide to raise customs barriers in the EU trade, which Trump announced for a moment in May (suggesting a 50 % rate). In turn, the treasury secretary Scott Bessent suggested in the congress to extend the negotiating window with a part of countries by another 90 days” – they noted.

“It seems that the most affecting the commercial policy is influenced by American business, under which the administration rationalizes the actions taken. However, this does not change the current situation in which the 10 % universal customs rate, 25 % 25 % for the automotive sector and 50 % for steel and aluminum”-summed up the representatives of Pie summed up.

The Polish Economic Institute is a public Think Tank economic; He prepares reports, analyzes and recommendations regarding key areas of the economy and social life in Poland. (PAP)

FOS/ MMU/