President Trump on Thursday set in motion a plan for new tariffs on other countries globally, an ambitious move that could shatter the rules of global trading and is likely to set off furious negotiations.
The president directed his advisers to come up with new tariff levels that take into account a range of trade barriers and other economic approaches adopted by America’s trading partners. That includes not only the tariffs that other countries charge the United States, but also the taxes they charge on foreign products, the subsidies they give their industries, their exchange rates, and other behaviors the president deems unfair.
The president has said the step was necessary to even out America’s “unfair” relationships and stop other countries from taking advantage of the United States on trade. But he made clear that his ultimate goal was to force companies to bring their manufacturing back to the United States.
“If you build your product in the United States, there are no tariffs,” he said during remarks in the Oval Office.
Howard Lutnick, the president’s nominee for commerce secretary, said the measures could be ready as soon as April 2. He will oversee the plan along with Jamieson Greer, Mr. Trump’s pick for trade representative, if they both are confirmed to those posts, and other advisers.
The decision to rework the tariffs that America charges on imported goods would represent a dramatic overhaul of the global trading system. For decades, the United States has set its tariff levels through negotiations at international trade bodies like the World Trade Organization.
Import Taxes Around the World
The average tariff rate the United States charges for imports is relatively low compared with that of most other countries. In general, wealthier countries tend to levy lower tariffs than poorer ones.
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Average tariff rate for all products
4%
8%
16%
20%
U.K.
4%
Canada
4%
Japan
4%
United
States 3%
European
Union 5%
China
8%
S. Korea
13%
Mexico
7%
Vietnam
9%
India
17%
Brazil
11%
Aus.
2%
Average tariff rate for all products
4%
8%
16%
20%
U.K.
4%
Canada
4%
European
Union 5%
United
States 3%
Japan
4%
China
8%
S. Korea
13%
Mexico
7%
India
17%
Vietnam
9%
Brazil
11%
Australia
2%
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Source: Economy - nytimes.com
