WASHINGTON: President Donald Trump introduced that he would impose “reciprocal tariffs” on US buying and selling companions on Thursday (Feb 13), opening new fronts in a commerce warfare.
“Three nice weeks, maybe one of the best ever, however at this time is the massive one: reciprocal tariffs!!! Make America nice once more!!!” Trump mentioned in a put up in all capital letters on his Reality Social platform.
The transfer would match the US’ tariff charges on imports to the degrees that different international locations impose on US items.
Analysts have warned that reciprocal duties might convey a broad tariff hike to rising market economies corresponding to India and Thailand, which are likely to have increased efficient tariff charges on US items.
Nations which have commerce offers with Washington corresponding to South Korea are much less in danger from this transfer, analysts consider.
Throughout election campaigning, Trump promised: “A watch for an eye fixed, a tariff for a tariff, similar precise quantity.”
For instance, if India imposes a 25 per cent tariff on US autos, Washington can have a 25 per cent tariff as properly on imports of autos from India, defined a Nomura report this week.
“Trump’s goal of implementing reciprocal tariffs is to make sure truthful remedy for US exports, which might not directly additionally handle US commerce imbalances with accomplice international locations,” analysts at Nomura mentioned.
