“US President Donald Trump has introduced new trade restrictions, raising duties on imports from Canada and Mexico to 25%, and on Chinese goods – up to 20%, this decision will affect the import of about $ 1.5 trillion per year.”, – WRITE: www.pravda.com.ua
Source: “European Truth” with reference to Bloomberg material
Details: According to Bloomberg, Donald Trump has fulfilled his promise to hit Canada and Mexico with high import duties, making one of the largest rates in the US since the 1930s. This has become a serious aggravation of the Trade War, which can complicate relations with key economic partners.
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New duties – 25% for most imports from Canada and Mexico, as well as raising tariffs for Chinese goods from 10% to 20% – touch the annual imports of $ 1.5 trillion. By this decision, Trump signals that it is ready to use duties to attract additional budget revenues and support domestic production.
This step has caused the instantaneous reaction of Canada and China, and can provoke appropriate actions by Mexico. It jeopardizes the fate of a trade agreement between the US, Canada and Mexico, concluded during the first term of Trump. There is also a risk of weakening the US economy and inflation.
According to a study of the Yale University budget laboratory, such tariffs will raise the average level of import duties in the United States to the highest rate since 1943. For US households, this will mean additional costs up to $ 2,000 per year and can slow down the economic growth of the country, especially if other countries take similar measures.
Canada has already announced the relevant duties on American goods. The first stage provides 25% of the import fee with a total value of $ 30 billion ($ 20.6 billion), which will come into force at the same time as US tariffs. Three weeks, Canada will introduce a second package of duties worth $ 125 billion in cars, trucks, steel and aluminum.
“Canada will not leave this unjustified solution unanswered,” said Prime Minister Justin Trudeau. He recalled that this plan of action is identical to the one he proposed in February after Trump signed a decree on new tariffs.
In response to new US duties, China introduced an increased import fee by 10% -15% for a number of US agricultural and foodstuffs on March 4. In addition, Beijing has introduced export and investment restrictions on 25 US companies.
Trump signaled the desire to talk to the Chinese leader Xi Jinping, but they still did not talk a month after the US president raised the issue of calling the agreement.
On March 3, President of Mexico Claudia Shenbaum said that her government would wait for Trump’s decision before responding in response.
Recall:
- US President Donald Trump has announced 25% of duties on EU goods soon.
- The Prime Minister of the EU Council Donald Tusk denied Trump’s statements that Brussels’s goal is to “cheat on the United States.” At the same time, Budapest accused Brussels of Trump wants to impose 25 percent duties on European products.
- French President Emmanuel Macron hopes that Trump has not fought a trade war against Europe, but to focus on China. Finland’s Prime Minister stressed that no one wins from the Trade War.