Donald Trump announces new worldwide tariffs that could trigger major global trade war
US President Donald Trump has announced a 'reciprocal tariff' to any countries which charge tax on US imports.
After getting sworn in as the 47th President of the United States, Donald Trump wasted no time signing a staggering 50 plus executive orders - although, a fair few have been halted in their tracks.
However, yesterday (February 13), the White House shared an article announcing 'Reciprocal trade and tariffs'.
The article declares itself as a written message for the Secretary of the Treasury, Secretary of Commerce, Secretary of Homeland Security, the Director of the Office of Management and Budget, the United States Trade Representative, the Assistant of the President for Economic Policy and the Senior Counselor to the President for Trade and Manufacturing.
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It states the US has been 'treated unfairly by trading partners, both friend and foe,' for 'many years' and its 'workers and industries' are bearing 'the brunt of unfair practices and limited access to foreign markets'.
Branding the situation 'untenable,' and threatening the US' 'economic and national security,' Trump's new policy aims to make 'trade more reciprocal and balanced' by introducing the 'Fair and Reciprocal Plan' to 'counter non-reciprocal trading arrangements with trading partners by determining the equivalent of a reciprocal tariff with respect to each foreign trading partner'.
To do this, the plan will examine 'tariffs imposed on US products' alongside taxes imposed on US businesses, workers, and consumers.
And Trump doubled down on the plan in a post on Truth Social.
Trump wrote: "On Trade, I have decided, for purposes of Fairness, that I will charge a RECIPROCAL Tariff meaning, whatever Countries charge the United States of America, we will charge them - No more, no less!
"For purposes of this United States Policy, we will consider Countries that use the VAT System, which is far more punitive than a Tariff, to be similar to that of a Tariff. Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted."
If Trump treats VAT as a tariff, chief North America economist at Capital Economics, Paul Ashworth, told Sky News that India could be hit with tariffs as high as 29 percent, Brazil with 28 percent, the EU with 25 percent and the UK a potential 24 percent.
But Trump reckons 'no other Country can complain' as he deems the policy 'fair to all'.
"In some cases, if a Country feels that the United States would be getting too high a Tariff, all they have to do is reduce or terminate their Tariff against us," he argued. "There are no Tariffs if you manufacture or build your product in the United States."
He rallied: "America has helped many Countries throughout the years, at great financial cost. It is now time that these Countries remember this, and treat us fairly – A LEVEL PLAYING FIELD FOR AMERICAN WORKERS."
It comes after Trump previously threatened to put 25 percent import taxes on all goods from Canada and Mexico.
However, he implemented a 30-day pause on these tariffs earlier this month after Mexico and Canada retaliated by issuing their own counter-tariffs.
Canada is imposing 25 percent tariffs on CA $155 billion of US goods, while Mexican President Claudia Sheinbaum ordered her economic minister to implement measures to protect Mexico's best interests.
What are tariffs?
Tariffs are taxes imposed on foreign goods, meaning many of these goods will cost more to sell in the US - so ultimately, the consumer will pay.
Advanced countries fell out of favor with tariffs following World War II, because they often lead to 'reduced trade, higher prices for consumers, and retaliation from abroad', the Council on Foreign Relations reports.
Topics: Donald Trump, Politics, US News, World News
Poppy Bilderbeck