US President Donald Trump on Wednesday announced a new set of tariffs, arguing that he would allow the United States to flourish financially.
These new imports, which were imposed by Trump through an executive order, is expected to send economic shockwaves worldwide.
But the US President believes that he is necessary to address business imbalances and protect American jobs and manufacturing.
Here are the basic elements of the plan.
10% baseline tariff
In a background call before Trump’s speech, a senior White House official told reporters that the President would put “baseline” tariffs on all imports to the US.
This rate is fixed at 10% and will be applicable on 5 April.
These are companies that bring foreign goods to the US that the government has to pay taxes, although it can have a knock-on effect on consumers.
Some countries will only face the base rate. This includes:
- United kingdom
- Singapore
- Brazil
- Australia
- New Zealand
- turkey
- Columbia
- Argentina
- El Salvador
- United Arab Emirates
- Saudi Arabia
Custom tariff for ‘worst criminals’
White house officials also stated that they describe about 60 of the “worst criminals” as specific mutual tariffs.
These will be applicable on 9 April.
Trump officials say that these countries charge high tariffs on American goods, implement “non-tariffs” obstacles in American trade or otherwise work in ways that they reduce American economic goals.
These optimized tariff rates include major business partners:
- European Union: 20%
- China: 54% (which includes first tariffs)
- Vietnam: 46%
- Thailand: 36%
- Japan: 24%
- Cambodia: 49%
- South Africa: 30%
- Taiwan: 32%
No extra tariffs on Canada and Mexico
The 10% baseline rate does not apply to Canada and Mexico, as they have already been targeted during Trump’s presidency.
The White House said it would deal with the two countries using a framework established in Trump’s previous executive orders, which put tariffs on the two countries as part of the administration’s efforts to address Fentaneel’s entry on the US and border issues.
Trump first determined those tariffs at 25% on all the goods entering both countries, before the announcement Some discounts and delays,
25% tariff on car imports
In addition, the President confirmed the introduction of a new American “25% tariff on all foreign-made-automobiles”.
This tariff came into force at midnight at midnight local time.