Trump announces global reciprocal tariff plan: imposing a 34% rate on Chinese imports and a 20% rate on EU goods.

AFP快讯, U.S. President Trump launched a global trade war on Wednesday (April 2), announcing the implementation of "reciprocal tariffs" to revitalize American industry and end what he called the "plundering" of America. Trump announced massive tariffs on imported products: 34% on Chinese goods, 20% on EU goods, 32% on Taiwan, and 46% on Vietnamese goods. After Trump announced the new tariffs, the US dollar fell more than 1% against the euro.

The US will impose a 10% tax on British and Brazilian goods, 24% on Japanese goods, 25% on South Korean goods, and 26% on Indian goods. The tariffs on Vietnamese and Cambodian products are as high as 46% and 49%, respectively.

Trump views this series of tariff measures as a "magic wand" that can help the US return to industrialization, rebalance trade deficits, and fill fiscal deficits.

Trump called this move an "economic independence declaration," and reiterated his commitment to lead the US into a "golden age." Trump said: "For decades, our country has been plundered, exploited, violated, and destroyed by countries near and far, whether allies or enemies."

Trump said on his social media platform Truth Social: "Today is America's Liberation Day."

In response, U.S. House Democratic leader Hakeem Jeffries rebutted: "This is not a liberation day, but the beginning of a recession."

Comment: The Trump administration has long adhered to protectionism, believing that the United States is at a disadvantage in global trade, with excessive trade deficits and damage to American interests. This reciprocal tariff plan aims to reduce trade deficits by increasing tariff barriers, protecting domestic industries and job opportunities in the US. The increase in US tariffs may lead to higher prices for imported goods, increasing costs for businesses and consumers, and driving up inflation levels. At the same time, tariff revenue can alleviate the US fiscal deficit problem to some extent. From the perspective of industrial structure, the return of manufacturing is not achieved solely through tariffs; the global industrial chain division of labor is determined by the comparative advantages and development stages of various countries. Moreover, a trade war may weaken the US' global economic status and affect its long-term growth potential.

Source: https://www.toutiao.com/article/1828334088709124/

Disclaimer: This article represents only the author's personal views.