Us tarifs: President Donald Trump has implemented a new tariff rule, in which 10% tax will be levied on goods coming from most countries. However, some countries have more tariffs. Canada and Mexico are not included in this list. The White House has also given the reason for this.
During his speech at the White House, a chart showed a chart which described new tariff rates. In this chart, 34%on goods coming from China, 20%on European Union, 25%on South Korea, 24%on Japan and 32%on Taiwan. The President has described this decision as a response to economic exploitation for decades.
White House told the reason
The White House confirmed that the new tariffs would not apply to Canada and Mexico as these countries have been exempted from the International Emergency Economic Powers Act (IEEPA). Under these rules, 0% tariffs on goods will continue to suit the USMCA (US-Mexico-Canada Agreement), while the goods which are not in accordance with the USMCA will be charged 25% tariffs and 10% tariffs on non-non-non-non-non-non-non-non-non-non-non-non-non-transportation imports on the USMCA. If the IEEPA orders are removed, 12% tariffs will be applicable to non-non-accessible goods.
Although Canada is exempted from baseline tariff of 10%, Trump still expressed his old displeasure over this country. He claimed that the US gives Canada a $ 200 billion subsidy every year. He said, “They have to work for themselves. We give subsidy to many countries, run them and maintain their business.”
Automobile has been applied separate 25% tariff
Trump has announced a separate 25% tariff on all foreign -made automobiles, which can have a major impact on Canada’s auto industry. However, the White House clarified that this tariff would only apply to the non-American materials present in the vehicles assembled in Canada. The government has described these tough tariffs as necessary to reduce the trade deficit of US $ 1.2 trillion. Senior officials say that the new policy will provide hundreds of billion dollars of revenue every year and other countries will also be forced to reduce their business sanctions.