Trump's additional duties came into force

Dutch entered into force a minute after midnight of the Eastern American time on Wednesday, April 9. This is the second part of Trump announced by Trump last week. On Saturday, a minimum 10 % was implemented. The rate for importing almost all goods from almost all countries.

Now the customs rate is increased for 57 countries with which USA They have a sales deficit. This group includes European Union – 20 percent

Additional duties also include Chinato which Trump, apart from the initial rate of 34 percent imposed an additional 50 percent After Beijing answered 34 % retaliation duty.

Including previously applied tariffs, Goods from China will be covered from Wednesday 104 % tax. This also applies to low-value parcels, which was based on the activities of Chinese e-commerce platforms such as this and Shein, although in this case the duty is 90 percent.

Customs – called by the president Donald Trump “mutual” – they are to establish equal conditions in foreign trade in theory, but in practice they do not reflect trade barriers used by other countries, and the size of their trade surplus from the USA. As a result, countries using high duties, such as Brazilreceived lower rates than those with low tariffs for US products, such as the EU.

High rates were especially burdened with Asian states, both American allies such as Japan (24 percent), South Korea (25 percent) Taiwan (32 percent), as well as countries that are sources of cheap production competing with this one produced in China, like India (26 percent), Vietnam (46 percent), Bangladesh (37 percent), Indonesia (32 percent) or Cambodia (49 percent).

On Monday, the White House announced that President Trump ordered his advisers to take separate commercial talks with each of the 70 countrieswhich asked about the start of negotiations, and the priority is to be covered by US allies and partners like Japan and South Korea.

Despite this, Trump on Tuesday stated that “he does not necessarily want to conclude these contracts” and mocked from countries desperately applying for the abolition of tariffs. The White House also rejected the proposal of Vietnam and the European Union The mutual abolition of duties to zero (the EU is about industrial goods, including cars).

However, the new duties will not apply to Canada and Mexico, to which President Trump has already imposed 25 percent. tax (it applies to about half of the import).

Steel, aluminum, cars and car parts, which are also separate 25 %, are also excluded from these tariffs. duties, as well as copper, medicines, semiconductors and wood (these are to be additionally sought in the future), as well as energy carriers and minerals inaccessible in the USA.

As Yale Budget Lab calculated, if all new duties come into force as announced by President Trump, the new average customs rate will increase from 2.2 to over 22 percent. And it will be the highest than over a century, and also definitely higher than customs in most countries of the world.

As a result, the duties will be higher even than the duties introduced by the Smoot-Hawley Act in 1930 in response to the great crisis. The duties of that time are recognized by historians as one of the reasons for the long duration of the global crisis.

Even before the entry into force of the customs, Trump's announcement was caused by one of the deepest declines in the history of Wall Street. Over the past four commercial days, the DO Jones index lost over 10 percent. And he recorded record fluctuations caused by uncertainty and contradictory signals from the Trump administration.

On the other hand JPMorgan analysts provide for a recession in the US if the introduced duties remain in force. Most analysts, however, predict that the rates will be reduced by negotiations with individual countries.