Tariffs on EU only way to get fairness: Trump

#Tariffs #fairness #Trump

WASHINGTON: US President Donald Trump has said Washington will impose tariffs on the European Union and his administration is discussing a 10 percent punitive duty on Chinese imports because fentanyl was being shipped from China to the US via Mexico and Canada.

The president made his latest tariff threats in remarks to reporters at the White House a day after he promised them during his campaign.

Financial markets and trade groups took a brief breather Tuesday, but his latest comments echoed Trump’s long-held desire for broader tariffs and a new Feb. 1 deadline for 25% tariffs against Canada and Mexico, as well as China. and identified duties on the European Union.

Trump said that the European Union and other countries are also worried about trade surpluses with the United States.

“The EU is very, very bad for us,” he said, adding: “So they’re going for tariffs. That’s the only way. […] You will get justice.”

Trump said on Monday he was considering imposing tariffs on Canada and Mexico unless they stop illegal immigration and the smuggling of fentanyl, including precursor chemicals from China, across their US borders. .

Trump had previously threatened to impose a 10 percent tariff on Chinese imports over trade, but agreed to it with a February 1 deadline.

White House trade adviser Peter Navarro told CNBC early Tuesday morning that Trump’s threat of tariffs on Canada and Mexico is intended to pressure both countries to stop illegal immigrants and illegal drugs from entering the United States.

“The reason they’re considering 25%, 25% and 10%, or whatever it’s going to be in Canada, Mexico and China, is because 300 Americans die every day from fentanyl overdoses,” Navarro said. “

Trump announced a sweeping immigration crackdown on Monday, including a broad ban on asylum.

Trade issues

President Trump also signed a broad trade memorandum, opening a new tab ordering federal agencies to complete comprehensive reviews of a range of trade issues by April 1.

These include analysis of the US trade deficit, unfair trade practices and currency manipulation among partner countries, including China. Trump’s memo calls for recommendations on remedies, including changes to a “global supplemental tariff” and an $800 de minimis duty-free exemption for low-value shipments often blamed for illegal imports of fentanyl precursor chemicals. is applied.

The reviews ordered some breathing room to bridge reported differences among the president’s Cabinet nominees over reaching their pledges of up to 60% global tariffs and duties on Chinese goods.

Trump’s more measured approach to tariffs fueled a rally in U.S. stocks that pushed the benchmark S&P 500 index to open the new tab at its highest level in a month, though China and the European Union Trump’s new salvo could slow that pace.

William Reinsch, a trade expert at the Center for Strategic and International Studies in Washington, said Trump likely “decided to go a little slower and also to make sure he has as strong a legal basis as he can on this.” can get for the kinds of measures.”

“He’s figuring out how to best use his leverage to get what he wants,” Reinsch added.

Mexico will respond step by step

Mexico and Canada struck a conciliatory tone in response to Trump’s February 1 deadline. Mexican President Claudia Scheinbaum said she would assert Mexico’s sovereignty and independence and respond “step by step” to US actions.

But he added that the U.S.-Mexico-Canada free trade agreement was not up for renegotiation until 2026, a comment aimed at preempting suggestions that Trump would seek to renegotiate the deal as soon as possible. It has a base of more than $1.8 trillion in three-way trade. .

Corn growers are concerned about U.S. tariffs and retaliatory duties that could disrupt trade with Mexico, their largest exporter of corn, and with Canada, which buys ethanol from U.S. corn. is the top exporter.

“We think he’s a negotiator,” Illinois farmer Kenny Hartman Jr., board president of the National Corn Growers Association, said of Trump.

“We’re just hoping we can get out of this where we don’t lose exports — we don’t lose corn going to Mexico or ethanol going to Canada,” he added.