Kathmandu. US President Donald Trump has taken a new tax policy to protect domestic industries. Foreign relations, Trump has taken a new policy against the values of the World Trade Organization (WTO). Since Trump won the presidency, he has announced huge tax rates on everything from champagne to steel and cars. Trump has declared a trade war by stopping the Russia-Ukraine world war.
Car war
Trump announced on Wednesday that the United States will impose a 25 percent tax on auto imports and the taxes will start on April 3. Germany and France, home to big companies such as Honda, Toyota, Hyundai, Volkswagen, Mercedes and Jeep maker Stellantis, have said the European Union (EU) should retaliate, while Japan and Canada are weighing their options.
Trump has warned that if the European Union (EU) and Canada work together to inflict economic damage on the United States, they will impose much higher tariffs on both than currently planned.
Taxes imposed
Trump imposed a 20 percent tariff on Chinese products in early March. President Trump has been seeking to wage a trade war with China since his first term (2017-2021). Beijing has retaliated by targeting U.S. agricultural products such as chicken, wheat and cotton. The 25 percent U.S. tariffs on steel and aluminum from around the world took effect in mid-March. Trump’s goal is to protect the declining U.S. steel industry, which is facing increasing competition, particularly from Asia.
The United States imports about half of the steel and aluminum used in the country to make everything from cars and planes to soft-drink cans. Canada is the United States’ leading supplier of steel. Next comes Brazil and then the European Union.
Ottawa has imposed additional tariffs of C$29.8 billion ($20.7 billion) on US goods ranging from steel to computers and sporting goods.
Delayed measures
The European Commission has responded to the steel tariffs by announcing plans to target a total of $28 billion worth of US goods, from bourbon to boats and motorcycles. But Brussels said last week that the tariffs, originally due to take effect on April 1, would be delayed by two weeks to give more time for negotiations. Trump has threatened to impose a 200 percent tariff on champagne, wine and other alcoholic beverages from the European Union (EU).
He has delayed tariffs on goods from Canada and Mexico. Both countries are preparing for retaliation.
Trump has signed plans for a sweeping “reciprocal tax” that could affect both friends and foes by April 2. He has called it “Liberation Day.” The tariffs would be tailored to each of America’s trading partners and would take into account taxes they impose on American goods, such as tariffs and value-added taxes. That’s also the day that delayed tariffs from Mexico and Canada will take effect.
Earlier this week, Trump announced a 25 percent tax on imports from countries that buy oil and gas from Venezuela. The punitive measure could hit China and India in particular.
He also vowed to impose a 25 percent tariff on products from the 27-member European Union, claiming that the EU has “taken advantage of us.” The EU has $50 billion in trade with the United States.
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