The new duties are both fruits of negotiated framework of commercial agreements (15 percent duties for goods from the EU, Japan, South Korea, 19 percent for Indonesia and Thailand, 20 % for Vietnam), how – In the case of most countries – the unilateral decision of President Donald Trump. As a result, higher duties will be, among others Settled products from countries producing cheap consumer goods, such as Bangladesh (20 %) and Taiwan (20 %).
Countries with a small surplus in trade from the US also received in a majority of 15 percent. rate, those with a deficit – a minimum rate of 10 %, while One of the highest duties will affect the goods imported from Brazil (50 percent, this punishment for a trial against former president Bolsonaro)Switzerland (39 percent), Burma, Bosnia and Herzegovina or South Africa (30 %).
The new duties are the closure of the last stage of the revolution in the commercial policy conducted by the administration of Donald Trump, but they do not end it.
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Donald Trump duties
Dutch were one of the words most frequently repeated by Trump in the election campaign, and the announcements of imposing taxes on imports were one of the president's first activities in his second term. The first goal was the neighbors and the greatest trading partners outside the EU – Mexico and Canadawhich Trump accused of insufficient borders control and the fight against fentanyl smuggling.
Though The president postponed the entry into force and soothed these duties, eventually 25 percent entered into force on March 4. tariffswhich included about half of the imported goods from these countries, not covered by a USMCA agreement between three countries. Trump threatened to increase these duties along with tariffs for the rest of the world, but eventually he did it in the case of Canada, for which on August 1 he raised a rate of up to 35 percent. The President of Mexico Claudia Sheinbaum won a 90-day extension of the deadline to continue negotiations.
Apart from these duties, Trump introduced a whole range of duties to individual sectors – steel and aluminum (initially 25, now 50 percent), cars and car parts (25 %) and copper (50 percent). For some countries that negotiated a preliminary trade agreement from the USA – EU, Korea, Japan – the duties on cars will be reduced.
A great coup in US trade policy
However, the duties in force since Thursday are a fruit The biggest coup in commercial policy during the rule of Donald Trumpstarted on April 2, called by Trump “the Day of Liberation”. The president then published a list of 70 countries, which he dramatically raised the duties, and their amount depended on the size of their surplus in trade with the USA. According to Yale Budget Lab estimates, the tariffs announced at that time would raise an average customs rate from 2.2 to over 22 percent. And it would be the highest for over a century, and also definitely higher than customs in most countries of the world.
After a violent reaction of stock markets and bonds, Trump announced the suspension of new duties for 90 days to give time to develop trade agreements with the world's largest economiesthen extended this date by another three weeks. Preliminary agreements were concluded only with a handful of countries – EU, Japan, South Korea, Indonesia, Vietnam, Great Britain, Thailand, Cambodia, Indonesia and Pakistan – but The new duties are mostly much lower than those announced on the “Liberation Day”. Despite this, they are still a radical increase in trade barriers, and the new average rate will be 17 percent. – Most from 1935
As Everett Eissentat, a longtime official and commercial negotiator said, and former economic advisor to President Trump, Dutch for the US President are a way to “independently change the order of the global trading system”To level out trade and set up a new system for many years – after it falls.
As he said, framework contracts, such as the one concluded with the European Union, will help reduce uncertainty and chaos regarding tariffs, although he admitted that New rates are still a radical departure from the norm.
“Aggressive tariff policy will remain with us”
– The full influence of the plan of mutual tariffs may not be known for a long time, but it is clear that the duties are the foundation of President Trump's economic program. The aggressive tariff policy will remain with us – said Eissenstat. As he notedthe current duties are only the first phase of introducing a new order. And actually The introduced tariffs are not the last word of Trump in this matter.
Only on Wednesday, the president announced the introduction of as much as 100 percent. duties on semiconductors, One of the foundations of the modern economy. Among the announced other duties are also for medicines, aircraft and aircraft engines trucks and wood. According to Trump's intentions, sectoral duties are aimed at restoring the production and extraction of these materials into the United States.
One of the greatest unknowns are also future trade relations with China. After an additional 34 percent announcement customs duties on “Liberation Day”, both powers entered the trade war, which ended with the introduction of over 100 %. Customs by both countries. In May, after talks in Geneva, the superpower included a temporary and shaky truceaccording to which the rate on goods from China fell to 30 percent, and the Chinese rate on goods from the USA – to 10 percent.
This agreement, however, expires on August 12, and despite the positive signals after the last round of talks of states in Stockholm on July 29, it is still unknown whether it will be extended.
