- Duties – called by President Donald Trump “mutual” – are to establish equal conditions in foreign trade in theory, but in practice they do not reflect the trade barriers used by other countries
- The countries call us, kiss me on the butt, kill me to conclude a contract on customs duties – said US President Donald Trump on Tuesday
- Investors' hopes for duties delay or commercial negotiations have weakened after the White House confirmed that on Tuesday night new rates will come into force on Wednesday
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The duties coming into force are the second part of the tariffs announced by Donald Trump last week, after the minimum 10 % was implemented on Saturday. The rate for importing almost all goods from almost all countries. On Wednesday, this rate is raised for 57 countries with which the United States has a commercial deficit.
This group includes European Union – 20 percent – and China, to which Trump, apart from the initial rate of 34 percent imposed an additional 50 percent After Beijing answered 34 % retaliation duty. Including previously applied tariffs, goods from China will be covered from Wednesday 104 percent. tax. This also applies to low-value parcels, which was based on the activities of Chinese e-commerce platforms such as this and Shein, although in this case the duty is 90 percent.
Donald Trump introduces mutual duties
Clinics – called by President Donald Trump ” – are to establish equal conditions in foreign trade in theory, but in practice do not reflect the trade barriers used by other countries, and the size of their trade surplus from the USA. As a result, countries using high duties, such as Brazil, received lower rates than those with low tariffs for US products, such as the EU.
High rates were especially burdened with Asian states, both American allies such as Japan (24 %), South Korea. (25 percent) or Taiwan (32 percent), as well as countries that are sources of cheap production competing with this produced in China, like India (26 percent), Vietnam (46 percent), Bangladesh (37 %), Indonesia (32 percent), and Cambodia (49 percent).
On Monday, the White House announced that President Trump ordered his advisers to take separate commercial conversations with each of the 70 countries that asked about the start of negotiations, and the priority is to be covered by allies and US partners like Japan and South Korea. Despite this, Trump on Tuesday stated that “he does not necessarily want to conclude these contracts” and mocked from countries desperately applying for the abolition of tariffs. The White House also rejected the proposal of Vietnam and the European Union about the mutual abolition of duties to zero (in the case of the EU it is about industrial goods, including cars).
Donald Trump: They kiss my ass
The countries call us, kiss me on the butt, kill me to conclude a contract on customs duties – said US President Donald Trump on Tuesday. He stated, however, that “not necessarily” wants to go to the arrangement with other countries, although he assessed that China would like to go compromise.
Trump referred to the trade war he caused – and the efforts of other countries to lead to the abolition of duties – during the evening, one and a half hours speech at dinner for the election campaign of the Republican election campaign to Congress.
The president argued that the imposition of customs duties was a good idea that thanks to the Treasury every day is received $ 2 billion, and the leaders of other countries desperately seek him to reduce taxes.
– I tell you, these countries call us, kiss me on the ass. They die to conclude a contract. “Please, sir, let's conclude a contract. I will do everything. I will do everything, sir,” Trump mocked, while getting angry with some of the Republican Congressmen seeking to take away his right to impose subsequent duties. Then I see some rebellious republican, you know, a guy who wants to show: ” They can't negotiate like me – assured the president.
Donald Trump duties. The stock exchange reacts
Tuesday's session at Wall Street ended in declines, although in the first part of the day the indexes have firmly increased. Investors' hopes for duties delay or commercial negotiations weakened after the White House confirmed that at night from Tuesday to Wednesday a total of 104 % duties on goods from China will come into force.
Dow Jones Industrial at the closure fell by 0.84 percent, to 37,645.59 points
S&P 500 at the end of the day fell by 1.57 percent and amounted to 4,982.77 points
Nasdaq Composite reduced by 2.15 percent Up to 15,267.91 points
The index of companies with the average capitalization of Russell 2000 loses 3 percent. and is 1,756.3 points
The VIX index grows by 10.5 percent, to 51.93 points
During the day, Dow Jones gained nearly 3.9 percent, and S&P 500 and Nasdaq went up more than 4 percent. Investors hoped that the US trade negotiations with other countries on which customs were imposed soon would start.
