Imposes Tariffs on Multiple Nations: Trump's Economic Policy Action
In an unprecedented move, the Trump administration announced additional tariffs on goods from 185 countries on April 2, 2018. The tariffs, ranging from 10% to as high as 54%, aimed to address perceived unfair trade practices and high tariffs on U.S. imports, with China being a predominant target.
Before this announcement, several tariff actions and delays had occurred. The administration postponed 25% tariffs on products from Canada and Mexico, contingent on compliance with the USMCA trade agreement, while some tariffs on Canadian energy imports were set at 10%. The 25% tariffs on other goods from Canada and Mexico went into effect on March 4, 2018, and an additional 10% tariff was imposed on China, raising total Chinese import tariffs to 20%.
The April 2 tariffs marked the beginning of a broadly expanded and escalated U.S. tariff regime. These tariffs evolved with some postponements, sector-specific changes, and further rate adjustments through subsequent years, reflecting ongoing U.S. trade negotiation dynamics and enforcement actions.
Countries with a trade surplus with the U.S. faced 10% tariffs, while deals with China and Mexico are still under consideration. Syria, Laos, Myanmar, Switzerland, Iraq, Serbia, South Africa, Algeria, Bosnia and Herzegovina, Libya have some of the highest tariffs, ranging from 30% to 41%. On the other hand, the U.K., Brazil, and the Falkland Islands have the lowest tariffs at 10%.
Notably, tariffs for some countries have been reduced, such as Taiwan (from 32% to 20%), South Korea (from 30% to 15%), Japan (from 24% to 15%), Lesotho (from 50% to 15%), and Vietnam (from 46% to 20%).
The new tariffs for Canada will come into effect on August 1. The standard tariff rate for most countries is 15%, but tariffs for some EU goods have been reduced from 20% to 15%. Tariffs have been imposed on 68 countries and the European Union, excluding Russia and Belarus. Some tariffs have been postponed for 90 days due to trade negotiations.
This extensive tariff regime is a significant development in U.S. trade policy, aiming to address perceived trade imbalances and enforce fair practices. The ongoing dynamics of these trade negotiations will undoubtedly shape the global trade landscape in the coming years.
Sources: [1] CNN [2] CNN [3] CNN [4] CNN [5] Other reputable news sources
- The Trump administration's announcement of additional tariffs on April 2, 2018, marked the beginning of a broadly expanded and escalated U.S. tariff regime, affecting goods from 185 countries.
- The administration's tariff policies have targeted countries with a trade surplus with the U.S., imposing 10% tariffs, whereas deals with China and Mexico are still under consideration.
- Some countries, such as Taiwan, South Korea, Japan, Lesotho, and Vietnam, have seen a reduction in tariffs, dropping from as high as 46% to as low as 15%.
- Politics and policy-and-legislation play a significant role in these tariff decisions, with businesses, investing, finance, general-news, and even war-and-conflicts potentially being influenced by these tariff changes.
