President Trump has shaken the world trade order by imposing unilateral tariffs to combat what he calls unfair trade practices by the EU, Canada, Mexico, China and other major trading partners of the US.
US GLOBAL TARIFFS
– 25% tariffs on imported steel and 10% tariffs on imported aluminum, imposed on 23 March 2018 on national security grounds. Exemptions have been granted to Argentina, Australia, Brazil and South Korea in exchange for quotas, and negotiations over quotas continue with Canada, Mexico and the European Union.
– 20% to 50% tariffs on imported washing machines, imposed on 22 January 2018 as a “global safeguard” action to protect US producers Whirlpool Corp and GE Appliances, a unit of China’s Haier Electronics Group Co Ltd.
– 30% tariffs on imported solar panels, imposed on 22 January 2018 as a “global safeguard” action to protect US producers Solar World, based in Germany, and Suniva, owned by China’s Shunfeng International Clean Energy Ltd.
– President Trump is considering tariffs of around 25% on imported cars and auto parts, based on a US Commerce Department study of whether such imports threaten U.S. national security. 18 May is the deadline to act on Commerce’s recommendations.
– The new US-Mexico-Canada Agreement protects Canadian and Mexican production in the event of such tariffs through a quota system. Trump has pledged not to impose auto tariffs on Japan and the European Union while trade negotiations with those partners are underway.
CANADIAN TARIFFS ON UNITED STATES
– Canada on 1 July 2018 imposed tariff on $12.6-B worth of US goods, including steel, aluminum, coffee, ketchup and bourbon whiskey in retaliation for US tariffs on Canadian steel and aluminum.
MEXICAN TARIFFS ON UNITED STATES
– Mexico on 5 June 2018 imposed tariffs of up to 25% on American steel, pork, cheese, apples, potatoes and bourbon, in retaliation for US tariffs on Mexican metals.
EUROPEAN UNION TARIFFS ON UNITED STATES
– The European Union on 22 June 2018 imposed import duties there of 25% on a $2.8-B range of imports from the United States in retaliation for US tariffs on European steel and aluminum. Targeted US products include Harley-Davidson motorcycles, bourbon, peanuts, blue jeans, steel and aluminum.
INDIA TARIFF THREAT
– India, the world’s biggest buyer of US almonds, has threatened to raise import duties on the nuts by 20% and increase tariffs on a range of other farm products and US iron and steel, in retaliation for US tariffs on Indian steel. These tariffs have been delayed several times, but an Indian Finance Ministry notice shows that they could be imposed as early as 16 May.
– President Trump said that he intends to end preferential trade treatment for India, which would result in US tariffs on up to $5.6-B of imports from India. This has not happened, but if it does, India is expected to retaliate with tariffs on US goods.
DUELING TARIFFS WITH TURKEY
– President Trump in August 2018 2X’d duty rates on steel and aluminum from Turkey to 50% and 20%, respectively, citing national security and currency concerns in an escalating trade dispute between the NATO allies.
– Turkey hit back by sharply increasing tariffs on $1.8-B worth of US goods, including a 120% duty on motor vehicles, 140% on alcoholic beverages, 50% on rice, 50% on structural steel and 60% on beauty products.
– President Trump also has said he will end preferential trade treatment for Turkey, a move that would impose tariffs on about $1.66-B of Turkish imports.
Latest posts by Paul Ebeling (see all)
- Wall Street’s Focus: Risk and Yield - July 20, 2019
- Disney’s (NYSE:DIS) ‘Lion King’ is Expected to Rule the Box Office This Weekend - July 20, 2019
- Study: ‘California Is Being Overrun By Rats’ - July 20, 2019