Trump announces tariff plan that does not discriminate between allies and opponents

(CLO) US President Donald Trump signed a plan to impose reciprocal tariffs on Thursday, a move that could affect both allies and trade rivals.

Speaking in the Oval Office, Mr. Trump announced that the US would apply the same tariffs that other countries impose on US goods.

"Any country that taxes us, we tax them," Trump said, while criticizing the European Union (EU) for being "extremely cruel" in its trade relations with Washington.

US President Donald Trump. Photo: WH

The tariffs will be adjusted on a per-trade basis, based on the tariffs they impose on US goods as well as taxes that the Trump administration considers “discriminatory,” such as value-added tax (VAT), according to a White House official who spoke on condition of anonymity.

Under the memorandum signed by Mr. Trump on Thursday, officials including the US Trade Representative and the Secretary of Commerce will propose solutions to each country.

Commerce Secretary Howard Lutnick said the study would be completed by April 1 and the US could begin imposing tariffs as early as April 2.

The White House plans to start looking at economies that have the largest trade deficits with the US or have the "most serious problems" in trade policy.

Trump's trade adviser Peter Navarro stressed that "major exporting countries attack the US market with harsh tariffs and even harsher non-tariff barriers".

Besides the EU, the White House also pointed to tariff differences between the US and India and Brazil, and mentioned Japan's "high structural barriers".

Economists warn that widespread tariffs on imports could increase inflation in the short term and hurt economic growth.

Mr Trump admitted that prices in the US “may go up” due to the tariffs, but he believes this will ultimately help stabilize the economy.

White House officials have stressed that the US is being “treated unfairly”, citing the country’s goods trade deficit that surpassed $1 trillion last year.

Mr Trump's announcement came just ahead of a meeting with Indian Prime Minister Narendra Modi in Washington.

Analysts warn that reciprocal tariffs could lead to broader tax increases for emerging economies such as India and Thailand, which have higher tariffs on US goods.

Conversely, countries like South Korea, which already have trade agreements with the US, may be less affected.

Cao Phong (according to CNA, NYT, BBC)

Source: https://www.congluan.vn/ong-trump-cong-bo-ke-hoach-thue-quan-doi-ung-khong-phan-biet-dong-minh-va-doi-thu-post334461.html