Donald Trump floats 15 or 20% blanket tariffs on most trading partners

Dismissing concerns about the negative impact of tariff hike on stock markets, Trump said he believed the tariffs had been well-received and said the stock market had reached a new high that day

US President Donald Trump on Thursday (local time) announced plans to impose blanket tariffs of 15 or 20 per cent on most trading partners, adding that Canada and the European Union could receive letters by Friday.

 

Trump made these announcements in a phone call with NBC News. Dismissing concerns regarding the negative impact of further tariffs on stock markets, Trump said, “I think the tariffs have been very well-received. The stock market hit a new high today.” He added, “We’re just going to say all of the remaining countries are going to pay, whether it’s 20 per cent or 15 per cent. We’ll work that out now.”

 

 

Trump imposes reciprocal tariffs 

On April 2, the Trump administration imposed ‘Liberation Day’ tariffs on more than 100 countries, including India, China, the UK, and Japan, among others. The tariffs were imposed over and above the 10 per cent baseline tariffs that were imposed on all imports. On April 9, the reciprocal tariffs were to come into effect; however, the Trump administration announced a 90-day pause, allowing countries to secure a trade deal with the US. 

As the July 9 deadline came close, only three countries were able to secure a deal with the US: the UK, China, and Vietnam. While deals with several others were to be expected, including India, Trump, on several occasions, announced that a deal with India would be finalised soon.

 

Trump accelerates global trade tensions

 

Days before the July 9 deadline to impose reciprocal tariffs came close, the Trump administration started sending out letters to trading partners, announcing new tariff rates, which included South Korea and Japan, which were charged with 25 per cent on goods each. Hours after, he announced new tariff rates for 12 other countries, ranging from 25 per cent to 40 per cent on nations including Myanmar, Thailand, Bangladesh, and Malaysia.

 

He also ruled out extending the August 1 deadline for implementing the reciprocal tariffs, a claim which was previously made by the Trump administration.

 

Trump imposes 35 per cent tariffs on Canada 

Speaking to NBC News about the letters to Canada and the European Union, Trump said, “I’d like to do it today”. He further said, “I’m talking [to the] European Union, which is, as you know, many countries, and Canada. We’ll be putting them out over the next couple of hours.”

 

Soon after, he announced a 35 per cent tariff on goods imported from Canada, which will come into effect on August 1. He added that the move is in response to Canada’s alleged trade barriers and retaliatory actions. Canada is one of the most important trading partners of the US, with over $400 billion of goods imported to the US last year.

 

European Union be hit by Trump tariffs? 

The European Union, comprising 27 member states, stands as the United States' biggest trading partner. According to the report, American businesses and consumers bought in goods valued at over $600 billion from the EU in the past year.