Tariffs: Donald Trump’s weapon of choice

The US president has imposed tariffs on Mexico to punish the country for failing to stop the flow of migrants towards the US border. It’s a tactic he uses frequently to pressure rivals.

US President Donald Trump waves as he boards Air Force One at Andrews Air Force Base May 20, 2019, in Maryland.
AFP

US President Donald Trump waves as he boards Air Force One at Andrews Air Force Base May 20, 2019, in Maryland.

US President Donald Trump wants to stop migration via Mexico by punishing the country with punitive tariffs.

The Republican leader announced that from June 10, a customs duty of five percent would be levied on all imports from Mexico. 

The tariffs would gradually rise to 25 percent by October, if Mexico does not take effective measures to stop illegal migrants heading to the US.

It is not the first time the US president has tried to ‘solve’ international disputes using tariffs.

Here are some countries Trump has issued tariffs against:

Trade-war with China

Despite trade negotiations, Trump has announced that he will increase import tariffs from 10 to 25 percent from next Friday. 

Negotiations on a trade agreement are progressing too slowly, he wrote on Twitter earlier in May.

Tariffs will be levied on goods worth $500bn and US Trade Representative Robert Lighthizer said more are in the works. The president has initiated a process that will culminate in a 25 percent duty on additional goods worth around 300 billion dollars. However, a final decision has not yet been made.

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Dispute with Turkey over Andrew Brunson

Trump has relieved some tariffs on steel imports from NATO ally Turkey after Ankara was hit with a special tariff of 50 percent amid diplomatic tensions over the latter’s detention of a US citizen, Pastor Andrew Brunson, who was later released.

From 21 May, the tariff will be reduced to 25 percent, according to the Trump administration. At the same time, Turkey is also losing privileges in trade with the USA. The changes will take effect on Friday.

Ending trade preferences with India

Turkey’s removal from the Generalized System of Preferences programme followed its "sufficient economic development," the US Trade Representative’s office said. India has also been removed from the list, which provides tariff-free entry for some goods.

India, meanwhile, is being terminated from the programme because it has failed “to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors”.

India was the largest beneficiary of the system, which covered roughly $5.69 billion in imports, according to a report issued by the Congressional Research Service in January. 

Trade disputes with the EU

The US is proposing levies on imports entering the country from the EU, in addition to levies on the imports of steel and aluminium introduced last year.

The EU imposed retaliatory tariffs on €2.8 billion worth of US goods in June on products such as bourbon whiskey, motorcycles and orange juice.

In April this year, Trump threatened to impose tariffs on cars imported from the EU if both sides cannot reach a trade deal.

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