UNITED STATES—On April 1, President Donald Trump instituted a reciprocal trade policy with other countries who have charged the United States tariff’s some since the 1930s. On April 2, Trump issued a press release on the White House webpage with complete details on how imposing tariffs on countries who charge us tariffs levels the playing field and corrects an imbalance that has been present for close to 100 years.
President Trump made the following statement regarding the new Reciprocal Tariffs:
“Today—on April 1—after a mere 71 days on the job, President Trump’s Administration delivered the results of its work. The Report provides the President with recommendations for transformative action. The Report charts a course for his Presidency to reshape U.S. trade relations by prioritizing economic and national security, and restoring the ability to make America, once again, a nation of producers and builders.”
In the press release, the President addressed volumes of information on the decades of abuses by The People’s Republic of China including opioids found in the packaging of shipped material. Trump gave the following information on tariffs:
“According to the WTO, the United States has among the lowest simple average MFN tariff rates in the world at 3.3 percent, while many of our key trading partners like Brazil (11.2 percent), China (7.5 percent), the European Union (EU) (5 percent), India (17 percent), and Vietnam (9.4 percent) have simple average MFN tariff rates that are significantly higher.
Moreover, these average MFN tariff rates conceal much larger discrepancies across economies in tariff rates applied to products.
For example, the United States imposes a 2.5 percent tariff on passenger vehicle imports (with internal combustion engines), while the European Union (10 percent), India (70 percent), and China (15 percent) impose much higher duties on the same product.
For network switches and routers, the United States imposes a 0 percent tariff, but for similar products, India (10 percent) levies a higher rate. Brazil (18 percent) and Indonesia (30 percent) impose a higher tariff on ethanol than does the United States (2.5 percent).
For rice in the husk, the U.S. MFN tariff is 2.7 percent (ad valorem equivalent), while India (80 percent), Malaysia (40 percent), and Turkey (an average of 31 percent) impose higher rates. Apples enter the United States duty-free, but not so in Turkey (60.3 percent) and India (50 percent).”
The Trump Administration has been under great scrutiny for imposing tariffs on imports. President Trump pointed out in his speech that it brings industry back to the United States. Corporations may build their product on U.S. soil and avoid the tariffs altogether.
A random radio-talk show host explained the process by comparing the imposed tariffs to growing pains. They go away with growth. The end game is that unemployment is down, production is up, and the American tax payers aren’t footing the multitude of tariffs imposed on us.
