imports2025-02-13 15-20-10
Executive Orders-Laws, Finance, Political

IMPORT from USA-NO-Ok-Reciprocal Tariff plan in Effect

IMPORT from USA, NO-Ok Reciprocal Tariff plan in Effect

USA will charge tariff on countries that charge USA. SOUNDS FAIR!Targets include China, Japan, South Korea and the European Union.

Why does USA have to outsource jobs internationally & buy from the world?

Executive Order below

Current Tariffs Being on 03/12/25:
Steel and aluminum imports
0% tariffs on goods from China
30-day hold on goods from Canada and Mexico.

Free Port Ship photo and picture

Trump Orders Plans for Reciprocal Tariffs on U.S. Trade Partners

U.S. President Donald Trump has directed his economic team to develop plans for reciprocal tariffs on every country that imposes tariffs on U.S. imports. The move, announced Thursday, significantly raises the likelihood of a global trade war, potentially affecting both American allies and adversaries.

“On trade, I have decided for purposes of fairness, that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America, we will charge them. No more, no less,” Trump told reporters from the Oval Office.

Trump’s Memo Orders Tariff Calculations

Trump signed a memorandum instructing his team to begin calculating tariffs that match those imposed by other nations. The directive also seeks to address non-tariff trade barriers, such as vehicle safety regulations that restrict U.S. auto exports and value-added taxes (VAT) that inflate the cost of American goods abroad.

However, the directive did not immediately impose new tariffs. Instead, it initiates what could be a weeks- or months-long review of the trade levies and policies enforced by foreign governments before the administration formulates its response.

The plan targets major U.S. trading partners, including China, Japan, South Korea, and the European Union. The announcement has heightened concerns over a widening trade war and its potential impact on U.S. inflation.

Commerce Secretary: Final Plan Due by April 1

Howard Lutnick, Trump’s nominee for Commerce Secretary, stated that the administration will evaluate each affected country separately. He confirmed that studies on reciprocal tariffs will be completed by April 1—the deadline Trump set on his first day in office for officials to develop a plan to reduce chronic U.S. trade deficits.

Trump, who campaigned on lowering consumer prices, acknowledged that prices could rise in the short term due to the new tariff policies but defended them, saying, “Tariffs are great.”

A White House official, speaking ahead of Trump’s Oval Office event, emphasized that the administration will focus first on countries with the largest trade surpluses and highest tariffs.

Trump’s proposed tariffs would match the highest duties charged by other nations and seek to counteract restrictive regulations, VAT systems, government subsidies, and currency policies that hinder U.S. exports.

“They effectively don’t let us do business. So we’re going to put a number on that that is a fair number. We’re able to accurately determine the cost of these non-monetary trade barriers,” Trump said.

A Strategy to Encourage Trade Negotiations?

The broad announcement appears to be designed, at least in part, to pressure other countries into negotiations. The White House official noted that Trump would be willing to lower tariffs if foreign governments agreed to reduce their own trade barriers.

Rather than a “one-size-fits-all” approach, the new tariff policy would allow for customized levies based on each country’s trade practices. However, the official did not rule out the possibility of a flat global tariff.

“It’s a relief that the administration isn’t rushing to impose new tariffs, and we welcome the president taking a more nuanced, inter-agency approach,” said Tiffany Smith, Vice President for Global Trade at the National Foreign Trade Council. “Ideally, this process will result in us working with our trading partners to lower their tariffs and trade barriers as opposed to increasing our own.”

Trump’s Expanding Tariff Policy

Since taking office on January 20, Trump has already implemented several major tariff measures:

  • March 12: Tariffs on all steel and aluminum imports will take effect.
  • China: A 10% tariff on all Chinese goods has been imposed.
  • Canada & Mexico: A 30-day hold has been placed on planned tariffs against both countries.

Additionally, Trump recently stated he is considering separate tariffs on cars, semiconductors, and pharmaceuticals. On Thursday, he confirmed that auto tariffs will be introduced soon.

Trade Experts: Every Country on Notice

Josh Lipsky, Director of the Atlantic Council’s GeoEconomics Center and a former IMF adviser, warned that the announcement is a serious escalation in U.S. trade policy.

“This is beyond negotiation. It’s to be taken very seriously,” Lipsky said. “I do think every country has been put on notice. And if you were going to implement reciprocal tariffs on the scale he’s talking about, this is actually how you would go about it.”

India’s Tariffs in the Spotlight

During the announcement, Trump acknowledged that India imposes the highest tariffs on U.S. exports among major trading partners. Indian Prime Minister Narendra Modi, who was in Washington for a meeting with Trump, oversees a government that has long faced criticism for high import duties on American goods.

Legal Hurdles in Implementing Reciprocal Tariffs

Structuring Trump’s proposed reciprocal tariffs presents major legal challenges. Experts note that his administration may have delayed the announcement earlier in the week as they explored legal pathways to impose the new duties.

Trade lawyers point to several possible legal authorities Trump could invoke:

  • Section 122 of the Trade Act of 1974: Allows for a flat tariff of up to 15% for six months.
  • Section 338 of the Tariff Act of 1930: Grants authority to retaliate against trade discrimination but has never been used before.
  • International Emergency Economic Powers Act (IEEPA): Previously used to justify tariffs on China and pending tariffs on Canada and Mexico.

A White House official confirmed that multiple legal mechanisms are under consideration.

“Absent IEEPA, there would need to be some kind of agency action first before any trade remedy tariffs can be imposed … but everything seems to be on the fast track,” said Damon Pike, a trade specialist and principal at BDO International’s U.S. division. He added that under normal circumstances, tariff decisions would be left to Congress—but Trump appears determined to act swiftly.

EXECUTIVE ORDER READS:

“Fact Sheet: President Donald J. Trump Announces “Fair and Reciprocal Plan” on Trade

February 13, 2025

THE “FAIR AND RECIPROCAL PLAN”: Today, President Donald J. Trump signed a Presidential Memorandum ordering the development of a comprehensive plan for restoring fairness in U.S. trade relationships and countering non-reciprocal trading arrangements.

  • The “Fair and Reciprocal Plan” will seek to correct longstanding imbalances in international trade and ensure fairness across the board.
  • Gone are the days of America being taken advantage of: this plan will put the American worker first, improve our competitiveness in every area of industry, reduce our trade deficit, and bolster our economic and national security. 

AMERICA WILL NO LONGER TOLERATE UNFAIR TRADE PRACTICES: The United States is one of the most open economies in the world, yet our trading partners keep their markets closed to our exports. This lack of reciprocity is unfair and contributes to our large and persistent annual trade deficit.

  • There are endless examples where our trading partners do not give the United States reciprocal treatment.
    • The U.S. tariff on ethanol is a mere 2.5%. Yet Brazil charges the U.S. ethanol exports a tariff of 18%. As a result, in 2024, the U.S. imported over $200 million in ethanol from Brazil while the U.S. exported only $52 million in ethanol to Brazil.
    • The U.S. average applied Most Favored Nation (MFN) tariff on agricultural goods is 5%. But India’s average applied MFN tariff is 39%. India also charges a 100% tariff on U.S. motorcycles, while we only charge a 2.4% tariff on Indian motorcycles.
    • The European Union can export all the shellfish it wants to America. But the EU bans shellfish exports from 48 of our states, despite committing in 2020 to expedite approvals for shellfish exports. As a result, in 2023, the U.S. imported $274 million in shellfish from the EU but exported only $38 million.
    • The EU also imposes a 10% tariff on imported cars. Yet the U.S. only imposes a 2.5% tariff.
    • A 2019 report found that across 132 countries and more than 600,000 product lines, United States exporters face higher tariffs more than two-thirds of the time.
  • This lack of reciprocity is one source of America’s large and persistent annual trade deficit in goods: closed markets abroad reduce U.S. exports and open markets at home result in significant imports, both of which undercut American competitiveness.
    • The United States has run a trade deficit of goods every year since 1975. In 2024, our trade deficit in goods exceeded $1 trillion.
    • Thanks to the proliferation of non-reciprocal barriers in just the last few years, the U.S. now runs a trade deficit in agriculture, worth around $40 billion in 2024.
  • Though America has no such thing, and only America should be allowed to tax American firms, trading partners hand American companies a bill for something called a digital service tax.
    • Canada and France use these taxes to each collect over $500 million per year from American companies.
    • Overall, these non-reciprocal taxes cost America’s firms over $2 billion per year.
    • Reciprocal tariffs will bring back fairness and prosperity to the distorted international trade system and stop Americans from being taken advantage of.

THE ART OF THE INTERNATIONAL DEAL: President Trump continues to deliver on his mandate given to him by the American People to put America First when it comes to trade.

  • As President Trump said in the Presidential Memorandum on American First Trade Policy on his first day in office, trade policy is a critical component of our economic security and national security.
  • In his first term, President Trump successfully ended the outdated and unfair NAFTA, replacing it with the historic USMCA to deliver one of the largest wins for American workers.
  • When our national security was threatened by a global oversupply of steel and aluminum, President Trump took swift action to protect America’s national security by implementing tariffs on imports of these goods.
  • In response to China’s intellectual property theft, forced technology transfer, and other unreasonable behavior, President Trump acted with conviction to impose tariffs on imports from China, using that leverage to reach a historic bilateral economic agreement.

Just last week, President Trump leveraged tariffs to force Canada and Mexico to make long-overdue changes at our northern and southern borders, ensuring the safety and security of American citizens.”

Sources:

Author: Ryan Bridglal, 02/13/2025