US officials issued a statistical report on trade barriers of countries, just 2 days before President Trump announced the reciprocal import tax.
On March 31, the US Trade Representative Office (USTR) published a national trade estimate report, which listed the policies and regulations of the countries they considered a trade barrier, both tariffs and non -tariffs. The report was released only two days before US President Donald Trump plans to announce the import tax on all trading partners.
The analysts are unclear whether this report will affect Mr. Trump’s reciprocal tax plan, which is expected to take effect from 2/4. The White House Trade Advisor regularly complains about the European Union (VAT) value added tax (EU), calling it an import tax. However, USTR’s report does not refer to VAT in the European study. They only mention this tax in countries like Argentina, Mexico, China and UAE.
Some other non -tariff barriers are also mentioned, such as the EU slowly licensed genetically modified agricultural products and banned the import of agricultural products containing some plant protection drugs. Europe has recently required plastic packaging to meet the minimum standard of recycled material content. USTR said that these are “ridiculous barriers to US exports”.
Trucks and containers at Ninh Ba Chu San port in Zhejiang (China). Image: Reuters
The USTR’s report also mentioned that Canada manages the supply of eggs, poultry and dairy products, by imposing import quotas. If the quota is exceeded, the applicable tax rate will be very high, like 245% with phomai and butter 298%.
In mid -February, Mr. Trump signed a memorandum of understanding of the US tax application with countries equivalent to the level they were applied to Washington. The non -tariff barriers were also responded to causing US exports to disadvantages. At that time, he directed the Ministry of Trade and the US Trade Representative to make detailed reports on handling with each country with foreign trade relations with this country. The US president said the reciprocal tax will target all countries.
“In modern history, no president has recognized trade barriers to US export businesses as much as President Trump. The Government strives to resolve injustice, fair restoration and priority for businesses and workers,” said US trade representative Jamieson Greer.
Mr. Trump considered import tax as a way to protect the domestic economy from unfair competition from the outside. This is also a tool for him to negotiate better terms for the US.
However, concerns about the trade war have made the global financial markets wobble over the past time. Analysts are also concerned about the possibility of American high inflation again and fall into recession.
Earlier, the US President imposed import tax on aluminum, steel, cars and additional taxes with all goods from China. Up to now, both Canada, China and Europe have announced retaliation. Canada on March 30 also warned that it would respond to the US reciprocal import tax on April 2.