TMTPOST -- U.S. President Donald Trump on Wednesday announced his long-awaited worldwide tariff plan, ranging from 10% to 50%.
Credit：China Central Television
In his first event from the White House Rose Garden, Trump touted April 2 as a day America's destiny was reclaimed and a day “that we began to make America wealthy again.” He said America has for decades been “ looted, pillaged, raped and plundered by nations near and far, both friend and foe alike”, and his new tariffs will bring back a “golden age” for the country.
"Today we are standing up for the American worker and we are finally putting America first," he said, calling it "one of the most important days, in my opinion, in American history." Specifically, Trump said his tariff plan consists of a baseline tariff of 10% for all trading partners, and specific reciprocal tariffs for “bad actors”.
Trump declared that foreign trade and economic practices have created a national emergency, and ordered to impose responsive tariffs to strengthen the international economic position of the United States and protect American workers, according to a fact sheet released by the White House. The president invoked his authority under the International Emergency Economic Powers Act of 1977 (IEEPA) to address such national emergency posed by the large and persistent trade deficit that is driven by the absence of reciprocity in our trade relationships and other harmful policies like currency manipulation and exorbitant value-added taxes (VAT) perpetuated by other countries.
Trump will impose a new blanket 10% tariff on all countries, which will take effect April 5 at 12:01 a.m. Eastern Time, and the countries with which the United States has the largest trade deficits will face an individualized reciprocal higher tariff, effective from April 9 at 12:01 a.m. Eastern Time. All other countries will continue to be subject to the original 10% tariff baseline.
Trump said these duties will not be full reciprocal tariffs as the specific higher reciprocal tariff rate will be at half the level they charge the U.S., which was calculated based on non-monetary trade barriers and currency manipulation. He at the event held a chart up to show different tariff rates his government decided to levy on individual countries.
Goods from China will face 34% tariffs on top of the current 20% tariff. Levies on the European Union, Japan, South Korea will go to 20%, 24% and 25%, respectively. The hardest hit nations include Leasotho and Saint Pierre & Miquelon, both facing a levy of 50%. Goods from Vietnam, Laos and Cambodia will be charged at the tariff rate range between 46% and 49%. The United Kingdom, Brazil and Saudi Arabia will be among those being hit least with the baseline 10% tariffs.
American imports from Canada and Mexico that are compliant with United States-Mexico-Canada Agreement (USMCA) will be given exemption from the broader tariffs and individual reciprocal tariffs. USMC is a trade agreement that Trump's first administration negotiated to replace the decades-old North American Free Trade Agreement.
Trump on March 6 signed executive actions to grant temporary exemptions from tariffs imposed on Canadian and Mexican imports that are covered by the USMCA until April 2, effectively delaying the extra 25% tariffs that just went into effect on March 4 for almost a month. That agreement remains in effect, the White House said Wednesday.
For Canada and Mexico, the existing fentanyl/migration IEEPA orders remain in effect, and are unaffected by this order, according to the White House. It said that this means USMCA compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff. In the event the existing fentanyl/migration IEEPA orders are terminated, USMCA compliant goods would continue to receive preferential treatment, while non-USMCA compliant goods would be subject to a 12% reciprocal tariff.
Trump on Wednesday announced separate 25% auto tariffs would take effect on April 3, while autos and auto parts are included in the White House fact sheet as goods that will not be affected by the new reciprocal tariffs.
The fact sheet listed some goods will not be subject to the reciprocal tariffs, including articles subject to 50 USC 1702(b); steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs, copper, pharmaceuticals, semiconductors and lumber articles; all articles that may become subject to future Section 232 tariffs; bullion; and energy and other certain minerals that are not available in the United States.
更多精彩内容，关注钛媒体微信号（ID：taimeiti），或者下载钛媒体App
