While negotiations between India and the United States on a much-awaited interim trade pact are still stuck, former U.S. President Donald Trump declared on Thursday a new, aggressive step to implement reciprocal tariffs against nations that do business with America.
Starting Friday, Trump said, letters detailing the new tariff formulas would begin to go out.
My tendency is to send a letter out and indicate what tariffs nations are going to pay. We have over 170 nations. And how many agreements do you make? And you can make great deals, but they are so much more complicated," Trump said.
He reaffirmed his desire for simplicity over convoluted trade agreements, proposing the U.S. impose flat-rate tariffs.
"I'd like to do a straightforward deal where you can keep it and manage it. You're going to be paying a 20 per cent or 30 per cent tariff, and we're going to be sending out some letters, begin most likely tomorrow, perhaps 10 a day, to nations, outlining what they're going to have to pay to do business with the US," he said.
Over the past few months, Trump has initiated a range of trade actions against nations in Asia. He had previously suggested that America and India could strike a deal which would "open up India," although no official announcement has yet been made.
In the meanwhile, major obligations have already been set against a number of countries. These are a 36 per cent duty on Thai imports and a 32 per cent duty on Indonesian imports. There have been reports of a stalemate in the trade negotiations with Japan, which has led to a 24 per cent duty on Japanese imports.
Other countries that have been impacted include South Korea, which was hit with a 25 percent tariff; Malaysia, which has a 24 percent duty imposed on it; and the European Union, on which a 20 percent tariff was imposed. Taiwan, an important center for producing semiconductors, is also under a 32 percent tariff in the new agreement.
Trump's announcement marks a move towards more uniform and unilateral trade policy, as the U.S. seeks to reassess its economic ties around the world, including with strategic allies like India.
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