President Trump unveiled a plan for reciprocal tariffs on all countries, but did not immediately impose them. He directed nominees to develop a country-specific tariff plan within 180 days. They are tasked with considering subsidies and exchange rate manipulation. The 180-day deadline allows time for negotiating with affected countries. Trump stated that most countries charge the US higher tariffs, signaling a change in policy.
To ensure fairness, Trump proposed reciprocal tariffs, aligning them with what the US is charged. He aims to boost domestic manufacturing through his ‘Make in America’ initiative, offering no tariffs for products made in the US. A memo outlining the reciprocal tariff plan was released before Trump met with Prime Minister Modi. Peter Navarro, the trade advisor, suggested that India, Japan, and the EU might face new tariffs. India recently lowered tariffs on certain US goods, aiming to appease Trump, who plans to increase tariffs to offset budget deficits caused by proposed tax cuts.
Trump has only imposed one set of tariffs so far – a 10% duty on Chinese imports. Other tariffs, like the 25% duty on steel and aluminum and those on imports from Canada and Mexico, are scheduled to start in early March. Russell Vought is tasked with assessing the fiscal impact of these tariffs. Trump also threatened additional duties on cars, semiconductors, and pharmaceuticals, along with reciprocal tariffs to be announced later.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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