Last week, President Donald Trump announced a series of definitions that incited the United States against the rest of the world. The major companies remained silent. Small panic. The stock market decreased. Certainly worse than all, Switch 2 prerders has been delayed. After that, on the same day I entered the largest tariff, Trump hit the brake with “stopping for 90 days”. But it is just a temporary stop – not everything. Taxes on elements from all over the world remain higher than they were a week ago. And an escalating trade war with China has no end on the horizon.
Here’s almost what happened. Trump announced A 10 percent basic tax on the goods from almost every country on the planet, in addition to a higher tariff – sometimes up to 50 percent – on many of the most important trade partners in America. (They joined the current customs tariffs on the goods from Canada and Mexico, among other things.) The basic rate came into effect during the weekend, as Trump announced that despite the attempts of other countries to negotiate, it has not retreated. China took revenge on its own definitions, so Trump’s promise additional 50 percent increase on American taxes on Chinese goods, which reaches an amazing 104 percent number. As promised, the higher definitions kick Wednesday morning.
Then, Trump changed his opinion. he Declare This is “based on the fact that more than 75 countries have invited representatives of the United States … they have allowed a temporary stop for 90 days, and they significantly decrease a mutual tariff during this period.”
Many people have taken this as good news, which is better news than nothing. But it is still very far from good – and the details are very confusing.
The new policy has fallen into a series of partial and contradictory statements, and even White House officials It doesn’t seem to know What are the definitions that apply to countries. The definitions were considered “temporary”, but the height of 10 percent is still valid. The stopping does not apply to Canada and Mexico, who have a set of their customs tariffs. Trump has promised more definitions coming to certain goods in the future as well. By the time you are in the middle of this article, the situation may have changed again.
Just for repetition, a “temporary stop” period will remain more than the value of the original element on goods from the largest manufacturing center in the world.
If you are still unclear about how the customs tariff works, then we have Do our best to explain this before. These are the taxes applied to imported goods in the United States from abroad that are applied to shipments when they reach the border and are based on the value of the goods. Trump presented some customs tariffs, depending on the type of import and others, according to the country of origin. Now, let’s disintegrate – as much as we know it – the state of play.
Steel, aluminum and cars
The simplest definitions that must be understood are 25 percent fees on all imports of steel, aluminum, cars, trucks and car parts. It was imported minerals Imposition of taxes starting in Februarywhile A tariff on vehicles It was announced in March and applied from April 3. Car parts are not covered after the definitions, but will be on May 3.
This customs tariff applies all over the world, with the exception of cases where countries are with specific commercial deals-for example, there is an exemption for some vehicles covered by the United States, Mexico and Cananga Convention (USMCA).
Canada and Mexico were among the first countries to be targeted specifically by definitions by the Trump administration, at a rate of 25 percent on all goods. This was Announced in Februarythen Stop temporarily for a monthBut he did so in the end It becomes valid in early March.
More importantly, this customs tariff does not affect the goods that are already covered by the USMCA trade agreement, which means that a large percentage of North America trade is still not affected by the new definitions. Canada responded Revenge definitions. Mexico did not do But not so “It is excluded.”
Canada and Mexico are not affected by the “mutual definitions” wave announced by Trump on April 2, including the basic tariff by 10 percent applied to the rest of the world. There was little confusion on that front. Even White House officials It seems that he is thinking for a short time A 10 % average rate throughout North America has been applied – but this has since been confirmed that Canada and Mexico are exempt.
China was the third country that Trump set from the beginning, began with plans for a 10 percent tariff on Chinese goods in February, stopped temporarily for a month, and implemented it as a 20 percent tariff in March. It has been raising the number since then.
When Trump declared a “mutual tariff” all over the world (which It was not actually mutualOn April 2, China was targeted at a rate of 34 percent – added to the current twenty, bringing the total 54 percent. But then China announced its tariffs by 34 percent On American goods, so Trump added 50 others, The landing is 104 percent. It was kicked on April 9.
but China returned once againRaising its own tariff to 84 percent. Trump’s response? I guessed that: another height. He released a global “temporary stop” declaration at a new rate of 125 percent, to add it to the first twenty -total of 145 percent – at the present time. China has already responded before Reducing Hollywood’s access to the Chinese box officeAnd we do not yet know how Trump takes it.
There are other wrinkles for China’s definitions. The country and Hong Kong have been targeted by a change in the tax exemption of the tax that was previously applied to imported goods, which are valued at less than $ 800. This is a Direct beating of the work model From online retail traders such as Shein and TEMU, which has long relied on charging products directly to customers to avoid any taxes and import duties.
Starting May 2, this exemption will not be applied, and even cheap products sent from China or Hong Kong using Post International Sost will be imposed on it now. The charger gets to decide whether 120 percent of the parcel value or a fixed rate of $ 100 per package will be paid, and it increases to $ 200 after June 1. These are the quadrants, the original rates that Trump announced, yet The rates were three times Then he grew up again – another response to China’s revenge.
When Trump announced “mutual prices”, he had almost ready numbers for every country on the planet, including some uninhabited islands. Currently, though, many of these have been greatly reduced.
Each country trades with the United States is subject to the 25 percent definitions on steel, aluminum and cars. Each country outside Canada, Mexico and China now has an additional 10 percent tariff across most of the other goods – what the White House calls “the boundary tariff”. This includes countries initially subject to much higher rates.
And taxes will not be imposed on some countries except at the rate of the foundation line. Others live in the borrowed time. Countries such as India, Vietnam and members of the European Union were appointed as a higher tariff that started for a short period on April 9, only to stop temporarily on the same day. This is up to them at the rate of 10 percent, but for only 90 days. After that, if they do not negotiate a better deal, the “mutual treatment prices” enter into force.
The European Union voted for its own collection of revenge definitions targeting American goods, especially those manufactured in the red states, but it has They were stuck for 90 days as well.
By the way, Trump is still planning for more customs tariffs; He said last week that Pharmaceutical chips and preparations It was the following in the list. What happens after that? No one knows – perhaps not even for him.
