The United States has announced a sweeping of reciprocal prices on goods entering the country, American president Donald Trump said Thursday at the Oval Office.
“I decided for equity purposes that I will charge a reciprocal rate. This means that all countries invoice in the United States of America, we will charge them, no more or more, “said Trump by signing the decree on Thursday.
Trump said the price would differentiate according to the prices that individual countries imposed on American goods.
“In almost all cases, they charge us much more than what we are invoicing then, but these days are over,” he said.
The prices had not entered into force on Thursday but could start to be imposed in a few weeks while Trump’s sales and economic team studies bilateral pricing and commercial relations, said a White House manager at a conference Telephone, according to Reuters.
The decree indicated that the most recent tariff approach “will be of a complete scope, examining non-reciprocal trade relations with all trade partners in the United States”.
The ordinance describes “non -reciprocal trade relations” in very wide terms, including all prices on American products, taxes and obstacles not value. “
A non-reciprocal commercial relationship, according to the decree, would be that which “in the judgment of the commercial representative of the United States … imposes any unjust limitation on market access”.
He added that a “non -carial obstacle” would be described as “any non -monetary policy or obstacle imposed by the government which restricts, prevents or prevents international trade in goods”.
Economists, including a recent report from the Bank of Canada, have warned that a “world trade conflict” will lead to a drop in economic growth around the world.
The Canadian Chamber of Commerce, in a statement, said that Trump’s decision would be a “step towards the dismantling of an international trade order based on rules which has made a large part of the Western world, in particular the states- United, more prosperous and more productive ”.
“The disturbance of long -standing and mutually beneficial commercial models with self -destructive rates has no sense for American or Canadian economic success. Prices are taxes. They increase the cost of goods and services. They are not – as the president claims – an endless source of income. The continuation of an American industrial model of the past will increase the costs of goods, a long -term economic drop and job losses, “said Candace Laing, president and chief executive officer, in a press release .
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Laing has called on the Canadian government to improve internal trade between Canadian provinces and ensure that regulations in Canada attract investments.
What are the reciprocal rates?
After weeks of concentration on reprisal prices, many may wonder what the term “reciprocal” means.
Trump did not specify in detail how he defines the term.
There remains an uncertainty as to whether his order would only apply to the corresponding rates or to the inclusion of other foreign taxes which he considers as an obstacle to the export of American goods.
In general, a reciprocal rate seems to aim to match the value or spirit of any price in place by other countries on American products.
This is different from what has become known in the Canadian context as a reprisal rate, which was used when he discussed an answer to retaliate on new prices imposed by the United States in Canada.
For example, Canada has no leading prices on American products. If Trump follows his threat to impose these prices of 25% next month, these American rates that sweep would not be reciprocal, because Canada has not already in place.
Canada has a list of reprisal prices that the government will impose in direct response if this occurs, which, according to Trudeau, is made to inflict pain on American consumers while minimizing Canadian pain.
How will the prices be applied?
Howard Lungick, Trump’s choice for the Secretary of Commerce, said that the administration would be addressed to each country affected one by one. He said that the administration’s studies on the issue would be completed by April 1.
Trump, who campaigned on a commitment to reduce consumer prices, said prices could increase in the short term due to movements. “The prices are great,” he said.
The head of the White House, who spoke to journalists before Trump’s event in the Oval Office, said the administration would first examine the most “flagrant” problems, including countries with the largest surpluses commercial and highest rate rates.
Trump’s reciprocal prices will correspond to the higher rights rates billed by other countries, he said. They would also aim to counter obstacles to non -tariff exchanges such as binding regulations, value added taxes, government subsidies and exchange rate policies that can erect obstacles to the flow of American products to foreign markets.
The effort also aims to launch negotiations with certain countries to reduce these obstacles.
The announcement appeared to be designed at least in part to trigger talks with other countries. The official said Trump would gladly reduce prices if other nations lowered theirs.
“The president is therefore more than happy to reduce prices if countries want to reduce prices. But also recognize that prices, higher prices, are not the largest part of the problem in many cases, otherwise most cases, “said the manager.
The objectives include China, Japan, South Korea and the European Union. The prices would avoid a “one-sized” approach for more personalized samples, he said, although he has not excluded a global flat rate.
– with files from the Associated Press and Reuters