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Donald Trump: US President Donald Trump is going to impose new tariffs from April 2. He is planning to impose tax on the import of cars and car parts. Trump is calling April 2 ‘Liberation Day’. He says that he will impose equal tax on those trading partners whose trade policy he does not like.
Earlier, Trump has also imposed tax on the import of steel and aluminum. He has also imposed tax on goods coming from Canada, China and Mexico. Now there are indications that he will also impose tax on those countries of Asia, Europe and South America, which sell more things to America but buy less from America.
This tariff will be implemented from April 2
Donald Trump has said that he will impose 25% tariff on motor vehicles, which will start from April 2. He said that tariffs on car parts will be implemented in May or later. America imports about 80 lakh cars every year, the total value of which is about 240 billion dollars. In addition, the US has imposed a 25% tariff on imports from Canada and Mexico from March 4 and a 10% tariff on energy-related imports from Canada.
Other countries are also imposing tariffs
Motor vehicles and their parts are manufactured under the US-Mexico and Canada Free Trade Agreement, so they are exempt from tariffs. But this is until the US Customs Office creates a system for imposing new duties. The White House says that the purpose of imposing tariffs on Canada and Mexico is to prevent their governments from illegal immigrants and illegally produced fentanyl (a powerful opioid drug) from entering the US.
The US imposed a 10% tariff on goods coming from China on February 4, which was increased to 20% on March 4. However, shipments worth less than $800 have been exempted from this tariff. In response, China has imposed tariffs of 10 to 15% on US goods, including agricultural equipment. Canada has responded by imposing tariffs on more than $40 billion worth of US goods, while Mexico has refrained from imposing tariffs. Apart from this, on March 12, the US has imposed a 25% tariff on steel and aluminum coming from any country in the world.
These countries have been affected by this
This decision of the US has affected Canada, Brazil, Mexico, South Korea, Vietnam and Japan because these countries send steel and aluminum to the US. The European Union has also decided to impose tariffs on $28 billion worth of US goods from April 1, including Bourbon whiskey, motorbikes and boats.
From March 25, the US has imposed a 25% tariff on goods coming from countries that buy oil from Venezuela. The White House says that by doing this they want to put pressure on the country’s ‘corrupt’ government. According to research company Moody’s Analytics, current tariffs are imposed on goods worth a total of $1.4 trillion. This has increased the average US tariff rate on imported goods from 3% to 10%, the highest level since World War II.
Which new tariffs will be imposed from April 2?
Trump is repeatedly calling April 2 ‘Liberation Day’. He wrote on the social media platform Truth Social, “April 2 will be Liberation Day in America.” He said, “For many decades, every country in the world has looted us – whether they are friends or enemies. Now the time has come for America to get its respect and money back.” During the election campaign, Trump had said that companies that enter the US will be given a 10 to 20% discount on tariffs on their goods. Recently he talked about imposing reciprocal tariffs and said, “If they impose tariffs on us, we will also impose tariffs on them.”
However, in an interview to Newsmax TV on March 24, he said that his stance on this plan could be soft and many countries could be given relief. He said, “Some countries will be kept aside. We will impose less duty than what they impose on us.” According to a CNBC report, the White House has said that they may drop the plan to impose tariffs on those countries that impose value added tax on their goods. Kevin Hassett, director of the US Economic Council, said, “I see the market expecting that big tariffs will be imposed on only a few countries.
Know what will be the effect of tariffs
The effect of tariffs will be on both the US and other countries. Economists believe that imposing tariffs will increase the prices of goods for American consumers and the production cost of American companies will also increase. Imposing tariffs in response to other countries will also harm American exporters. According to Moody’s Analytics, the US economy may decline by 0.6% in the coming year due to tariffs and it will also lead to the loss of 2.5 lakh jobs. Moody’s Analytics also said that Canada and Mexico are highly dependent on the US market for their imports, so they may also have to pay a heavy price for this tariff and it will be difficult to avoid recession.
