New Trump’s passage in his protectionist escalation. Its new decision directly impacts the European Union as retaliation for VAT. The new White House tenant has announced the imposition of “Reciprocal tariffs” to countries that tax US productswith the aim of equalizing the rates that these nations apply to US exports, and with the European Union (EU) and emerging countries among the main victims.
“I have decided that, for reasons of justice, I will impose reciprocal tariff In the Oval Office, where he advanced that he intends to sign a memorandum with that order.
The tariffs have not yet entered into force, but they could begin to apply in a matter of weeks, since Trump’s economic and commercial team is studying bilateral relations in terms of tariffs and commerce. The administration will first examine the most “flagrant” cases, focusing on countries with the highest commercial surpluses and the highest tariff rates.
The measure will mainly impact China, Japan, South Korea, India and the European Union. Howard Lutnick, Secretary of Commerce, has assured that the Administration will address each country affected individually and says that studies on the subject will be complete before April 1.
Since he assumed the position on January 20, Trump has already announced tariff Tariffs on goods from Canada and Mexico.
Very critical of the EU
The president has been especially critical of the European Union, which he has accused of being “absolutely brutal in commerce” and imposing what qualifies as “an undercover tariff” through VAT, which varies between 17 % in Luxembourg and 27 % in Hungary.
“There is a reason why Germany sells more cars than we sell them, and it is not because of the quality of manufacturing or American design. It is simply for unfair commercial practices, and that is lethal. It is a hidden tariff,” Trump has stressed
At present, the EU imposes a 10 % tariff on imported cars, in addition to community VAT, which is minimum of 17 %. Therefore, with the new policy, USA would apply an equivalent rate, adding a 10 % tariff and the corresponding VAT percentage, which could raise the total rate to 27 %.
