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Donald Trump revealed a comprehensive plan to impose “reciprocal” tariffs on American trade partners on Thursday, designing a greater interruption to the global economy.
In a width directed both in US Allies and opponents, Trump led his senior trade advisers to go out with new tariffs on a “country-place” basis in retaliation against taxes, regulations and subsidies that are considered unfair by Washington.
White House and Trump officials warned that trading partners Brazil, India, Japan, Canada and the EU were in danger of being hit by additional tariffs.
However, one official said the administration would consider the countries with which the US had the most commercial deficits, which would include Mexico and China before imposing new taxes.
“I have decided, for the purposes of justice, which I will charge a reciprocal fee, means whatever countries charge the United States of America,” Trump said. “In almost all cases, they are loading us much more than we charge them, but those days are over.”
Mutual tariffs can be imposed as early as April 2, accelerating efforts in the capitals across the globe to begin negotiations with Washington to prevent their implementation.
The dollar weakened on Friday against a basket of coins including Euro and Yen, hitting a low three-week low. It has fallen more than 1 percent since the beginning of the week, while the yield of the 10-year-old US Treasury nude up to 4,535 percent.
Analysts in Barclays said in a note published Friday: “While global financial markets may be prone to receiving delay relief.. It is not clear to us if the delay necessarily reflects a lower likelihood that they eventually settled. “
Trump’s latest tariff plan was discovered within a week in which he moved to transform geopolitical landscape with a renewable push to end the war in Ukraine with calls to Russian President Vladimir Putin and Ukraine President Volodymyr Zelenskyy .
As he hosted Narendra Modi, India’s prime minister, Trump criticized traditional US allies as he appeared to lay an olive branch for strategic enemies such as China and Russia. Trump even invited Russia to reunite in the G7 group of wealthy nations after being suspended in 2014 for its annexation of Crimea.
“It’s not a matter to like Russia or dislike Russia,” Trump told reporters at the Oval office. “All you talk about is Russia, and they have to sit at the table. I think Putin would like to come back.”
Trump said he would include Kyive in every negotiation with Putin to end the war. He added that it would hold additional talks with China and Russia on defense spending in an effort to reduce the $ 850 billion defense budget.
He said he thought that Sha and China may have “a very good relationship”, adding: “I think China is a very important player in the world, I think, (Beijing) can help us get this war with Ukraine and Russia ”
The president had particularly sharp words for the EU, describing the long-term US ally as “very bad”. He criticized the block for his increased value of the tax regime, the digital service tax and efforts to reduce US technology companies in courts.
“The European Union has been very harsh for our companies,” Trump said. “They suit the Apple, they sued Google, they sued Facebook, they sued many other companies and are US companies. The judicial system there is not very good for our companies.”
During their meeting at the White House, Trump greeted Modi as a “very special man” and spoke of the “special connection” between India and Sh.BA
But he also criticized New Delhi for his high tariffs and announced measures to increase oil and gas sales and US defense in India to reduce the deficit, which exceeded $ 35BN last year.
Trump said he and Modi would begin “negotiations to address the long inequalities that should have been cared for over the past four years” with the intention of signing a trade agreement.
Trump’s reciprocal tariff plan would be contrary to many of the set rules of global trade. White House officials said they could use various legal powers to enforce mutual taxes, such as Article 301 of the Law on Trade and the International Act of Emergency Economic Powers, to bypass the Congress.
Trump said he intended to issue further fees against cars, chips and pharmaceuticals “over and on” reciprocal fees. It has already applied taxes of 10 percent to all Chinese imports and 25 percent tariffs in all steel and aluminum imports are decided to take effect next month.
Additional reporting from John Reed to New Delhi and Arjun Neil Alim in Hong Kong
