The radical overthrow of the postwar world commercial scene is marked by duties whom he announced on April 2, the US President, Donald Trump.
THE Trump announced How the US “immediately” will impose mutual duties for all imports from all countries of the world.
It means that US duties against imports from other countries will increase to the same percentage as the other countries imposed on the detriment of US imports.
Especially For car imports in the US, the US president announced 25% dutieswhich means 10 duties for duties, for example, in the imports of car from the EU.
China and Vietnam will be among the countries that will be hit by higher tariff factor. Chinese imports will be charged a 34%duty. However, China is working to transfer the production of certain car components to third countries to bypass duties, which was really accelerated with the first Trump government duties. Vietnam will have 46%duties. The US will set a 10% key duty rate worldwide.
As far as the EU imports are mentioned, they will have a 20%duty.
Vietnam, Thailand, Cambodia and Malaysia account for about 80% of US solar panel imports. These countries are part of the mutual duties announced so far by President Trump.
Trump said that so far it seems we will have $ 6 trillion in investment.
Trump repeats that It calls for interest rate discount on cars for cars manufactured in America.
“To all foreign presidents, prime ministers, kings, queens, ambassadors and everyone else who will soon call out to ask for exceptions from these duties, I say end your own duties, throw your duties, throw away your barriers.”
It is recalled that so far it has implemented 25% duties to most imports from Canada and Mexico and has increased contributions to China to 20%.
There are some exceptions that the US will charge exactly the rates of these countries, according to the diagram.
- China: 34%
- EU: 20%
- Vietnam: 46%
- Taivan: 32%
- Japan: 24%
- India: 26%
- South Korea: 25%
- Britain: 10%
- Cambodia: 49%
- Switzerland: 31%
- South Africa: 30%
- Indonesia: 32%
- Brazil: 10%
- Singapore: 10%
- Algeria 30%
- Oman 10%
- Uruguay 10%
- Bahamas 10%
- 50% lesoth
- Ukraine 10%
- Bahrain 10%
- Qatar 10%
- Mauritius 40%
- Fiji 32%
- Iceland 10%
- Kenya 10%
- Liechtenstein 37%
- Guyana 38%
- Haiti 10%
- Bosnia-Herzegovina 35%
- Nigeria 14%
- Namibia 21%
- Brunei 24%
- Bolivia 10%
- Panama 10%
- Venezuela 15%
- Northern Macedonia 33%
- Ethiopia 10%
The reactions of the markets
Coins and prices are reversed as Trump describes mutual duties and the market sees that 10% is a minimum level.
State bond yields have been changed from about six basis points higher to lower at the meeting.
The 10 -year performance is moving from the high session to 4.23% back to 4.15%. In the currency market, GEN deletes the losses.
The S & P500 sank about 1.5% in advanced hours, while contracts in the technologically heavy Nasdaq 100 fell 2%.
The Mexican Peso and the Canadian dollar immediately climbed high levels of the US dollar after the news that the two countries are not subject to mutual duties at present. The peso rose 0.8%, while Loonie won 0.5%.
So far, oil traders note that There are no explicit exceptions to energy. In a worrying sign for US drivers and consumers, US petrol contracts are rising after settlement transactions, even when the crude recedes. Future gasoline contracts are increased by about 2% now.
Trump called on Congress to vote on the tax bill immediately.
Congress members are also anxious to do this as soon as they can agree on a plan. They hope that it can neutralize part of the market turmoil and the economic uncertainty caused by Trump’s duties.
These moves have been bringing US import duties to their highest average level since 1943, according to the budget laboratory of the University of Yale, and Trump has stated that other increases may follow.
It is worth reading a Bloomberg analysis to understand how duties work – including who is actually paying them and how revenue is collected.
What are duties and what purpose do they serve?
Duties are taxes imposed on imported goods. Like all taxes, they are Source of state revenue.
Countries have long been based on them to support local industries making foreign products more expensive.
Trump also uses them as Pressure lever to achieve foreign policy goals.
How are invoices collected and imposed?
The US Minister of Finance is responsible for establishing regulations on the collection of duties, but the US Customs and Border Protection Service, or CBP, is the government entitled to impose themselves in nearly 330 ports across the country – which include border or border crossing and cross -country roads.
Agents are considering bureaucracy, conduct audits and collect contributions and fines. The money is collected during customs clearance and deposited at the Ministry of Finance General Fund. Those who do not correctly describe the quantity, category or origin of a particular product – either intentionally or because of negligence – face sanctions.
Some goods and components cross the borders many times before they become a finished product – such as a car with American -made components assembled in Mexico and reinstalled in the US. According to CBP rules, American products reinstated in the country without having “improved” or “evolved” into value are tax -free.
Another example: Let’s say the US exports gold to India, where it is used for the manufacture of earrings. The final product will be subject to duties when reinstating it to the US. In this case, even the value of gold will be taxed.
How much money is made from duties?
While duties were the main source of revenue for the US government, most of the previous century were a small share of government revenue.
From Last year, they represented less than 3% of federal revenueaccording to the analysis of government data by the Federal Bank of St. Louis.
The Combined duties in Canada, Mexico and China could translate into 1.1 trillion. dollars at additional costs for US importers in the next decade, According to estimates by the non -party Tax Foundation.
Only in 2025, according to team forecasts, this policy could increase duties by almost $ 110 billion.
The Tax Foundation estimates that the duties imposed on China by Trump during his first term and expanded during Joe Biden’s presidency brought an annual revenue of $ 77 billion.
Who pays for duties?
Research has generally found that It is the US consumers and businesses that absorb the costs from the highest duties.
Foreign producers can reduce their sale costs or US importers may absorb part of the cost.
To avoid weakening their profits, companies often choose to increase prices and take part of this cost to consumers.
However, there are possible windows, such as an exemption process that allows companies to ask for tax exemption if their payment would unjustifiably harm their business and there were no other options for buying products from another country.
What are the consequences of imposing duties?
The recent history of US trade with China helps explain what happens when duties are imposed.
During his first term, Trump imposed a series of tariffs on Chinese products, including steel, aluminum and engines.
The Asian country from supplying one in five goods introduced by the US before Trump’s first trade war in 2018, reached about 14% of US imports in 2023.
In addition, when the contributions are affected, importers often resort to a tendermaker. This can be done by sending goods through a third country, indicating the value of the products or their incorrect labeling as similar products that have lower duties.
Goldman Sachs economists have recently found that tax evasion could explain up to $ 90 billion from the estimated US Imports with $ 240 billion compared to the levels before the trade war.
What is the “external revenue service” proposed by Trump?
The Trump government has proposed the creation of a separate external revenue service to collect contributions in the context of its commercial policy “First America”. Analysts have noted that duty revenue is not a “external” source, as contributions are paid by US -based importers, who are at least part of the cost to US consumers. The concept emphasizes Trump’s desire to frame duties in foreign imports as a source of revenue that taxpayers do not bear.
What does all this mean about commercial conditions?
The US has entered into free trade agreements with 20 trade partners around the world – including one with Mexico and Canada known as USMCA or the new NAFTA.
In these agreements, countries are committed to reducing tariff rates to zero. Trump’s duties in Mexico and Canada contradict the trade agreement between the three countries (which is to renegotiate in 2026).
As a member of the World Trade Organization, the US is committed to rules that include subsidy restrictions, as well as commercial barriers, such as duties and quotas.