Where is the highest and less tariff? Explanation of mutual definitions Trump Donald Trump News

Customs duties in the United States in effect on Wednesday, April 2, with President Donald Trump’s warning on Sunday that “” “All countries“It will be affected.

At the same time, Trump said on Monday that it is compared to the definitions imposed by other countries on American imports, what will be announced will be relative.Compassionate“.

Trump described April 2 as “”Editing DayFor us trade. However, the details of his just and mutual plan remained mysterious.

What is a fair and mutual plan?

On February 13, Trump announced plans to review the definitions and commercial policies imposed by other countries on US exports.

Under what he calls the exposed and mutual plan, the United States will impose the same amount of definitions on other countries that these countries impose on American goods.

Trump has argued that many American commercial partners have benefited from the low -tariff rates of the United States while maintaining higher duties on American goods.

The emerging market economies in Africa, Latin America, South Asia and Southeast Asia are among the worst, either through the fees for the product or an average tariff on goods from specific countries.

Emerging economies imposed higher fees for a long time as a way to protect developing domestic industries and help these sectors prosper against foreign competition.

Trump’s declared goal is to reduce the trade deficit of the United States, as well as strengthen the local industry and the competitiveness of American manufacturers. He also wants to use definitions to finance tax cuts in the future.

However, critics argue that customs tariffs risk leading to commercial wars and the raising of consumer prices – including Americans.

What countries have the highest commercial deficit?

The United States has the largest commercial deficit in the world. According to data from 2023, the United States imported $ 1.1 trillion more than that of that year. The US trade deficit has risen continuously since 2019, and it has now become more than $ 1 trillion for four years in a row.

According to 2023 data, the country that has the second largest commercial deficit is the United Kingdom, reaching 271 billion dollars, followed by India with $ 241 billion, and France at a price of 137 billion dollars and Turkish at 106 billion dollars.

The role of the US dollar as a reserve currency in the world, partly, is carried by open trade and capital flows. Some economists argue that the trade imbalance benefits the United States because it maintains global demand for the dollar.

What countries have the largest commercial deficit?

In 2024, the United States had a trade deficit with 92 countries and a trade surplus with 111 countries.

The great trade deficit of the United States is the highest with three major economic partners – China, Mexico and Vietnam. In 2024, the United States ‘deficit was $ 295 billion, the United States and Mexico deficit at $ 172 billion, and the United States’ deficit, Vietnam, with $ 123 billion.

Despite the customs duties imposed on China seven years ago, the United States continues to manage its largest bilateral trade deficit with the country – driven by a strong demand for consumers to rely on Chinese goods and American companies on China in global supply chains.

Trump first presented the customs tariff in China in March 2018, citing the alleged intellectual property stealing and the desire to reduce the trade defect. These drawings continued during the era of former President Joe Biden, where customs duties are expanded in some cases.

In February, Washington presented more than 10 percent of the fees on China, which Beijing responded with Revenge definitions On imports from the United States of crude oil, agricultural machines, large displacement cars and captured trucks. In March, Trump doubled the rate of additional tariffs on Chinese imports to 20 percent.

The United States has some of the lowest definitions in the world

The American definitions were historically higher, especially during the nineteenth and early twentieth centuries. In response to the collapse of the stock market for the year 1929, which witnessed the emergence of the great depression, US President Herbert Hoover signed SMOOT-HWLEY tariff law in 1930. Its goal was to protect American farmers with a wide -ranging tariff on agricultural and industrial imports. However, many countries imposed a retaliatory tariff, which has weakened the American economy.

The 1934 mutual trade agreements law is a shift away from American protectionism, allowing the president to negotiate a low tariff with foreign governments and open the door for the most liberal global trade.

The relatively low tariff rate in the United States, as well as the large and wealthy market that represents it makes it an attractive destination for foreign exporters. Although American consumers may benefit from cheaper imports, the flow of foreign goods increases competition for local producers, which contributes to the commercial imbalance that Trump promised to reduce.

What about other countries – and free trade agreements?

The World Trade Organization (WTO) governs the world’s most effective business principle (MFN), which requires countries to extend the same trade conditions to all members of the World Trade Organization, regardless of economic or political influence.

However, the base allows exceptions such as FTAS or providing certain countries, such as developing, on more convenient conditions.

The United States is trading with more than 160 countries under the rules of these World Trade Organization. It also has free trade agreements with 20 countries. These agreements include:

• The United States, Mexico-Canada Convention with Mexico and Canada
• Korus FTA with South Korea
• Ausfta with Australia
• US-bahrain fta
• USA Chile
• US-COLombia FTA
• CAFTA-DR (Dominican and Sheikh Al-Wasatiya-America, USA, which includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Dominican Republic and the United States)
• United States-Israel FTA
• United States Jordan fta
• US-MOROCCO FTA
• US Free Trade Agreement
• Us-Panama FTA
• US-Peru
• Us-Singapore FTA

Countries and regions that have the lowest tariff include Hong Kong and Singapore, where there is a 0 % tariff on goods, with some exceptions.

Countries that maintain a low tariff are often focused on attracting investment or because they may not contain a large manufacturing industry, so they instead depend on imports.

However, the United States, the second largest manufacturing country in the world, has a relatively low tariff-as a result of the trade liberalization policies it follows after World War II.

Countries with the highest tariffs include countries that have the MFN situation in Tunisia with a customs tariff of 19.5 percent, Algeria (18.9 %) and Gabon (18.1 %).

The table below picks up countries that have the lowest and highest tariff of this using a simple MFN scale. This “simple medium tariff” is calculated by adding all individual tariff rates and dividing them on the number of known products. For example, if two products are subject to definitions, the product A is at 10 percent and the product B by 20 percent, then the average simple tariff will be 15 percent.

What industries will be affected by the Trump plan?

The main sectors that will be affected by industrial products, consumer products, cars, space, pharmaceutical preparations, technology, media, communications, energy, facilities, resources and private shares.

Trump has already announced a tariff for cars that enter April 2.

In a White House press release, the United States has allocated some countries to highlight the difference in definitions. In one example, I mentioned that the average American tariff for agricultural goods from India is 5 percent. But the average of India’s tariff for American agricultural goods is 39 percent.

India has also historically charged the customs tariffs by 100 percent on American motorcycles, which decreased to 30-40 percent in 2018, while the United States receives 2.4 percent tariffs on Indian motorcycles.

In February, India reduced its duties on Borbon whiskey imported from 150 percent to 100 percent after Trump’s criticism of “unfair” fees in South Asia.

What are the definitions that I have already?

Since Trump has reinforced his post, he used customs tariffs as a major weapon to stimulate his international trade goals-which he says includes combating trade deficit as well as bringing revenues to the United States.

However, the customs tariff historically was the result of making international goods more expensive. Local commodity prices usually increase.

So, what did Trump did since he reached his position?

February 1

Trump signs the executive orders that impose 25 percent Definitions On all goods from Mexico and Canada, in addition to 10 percent of the customs tariffs on Canadian energy and an additional 10 percent on Chinese goods. He cited drug smuggling and illegal immigration as reasons.

February 3

One month delay on Canadian and Mexican The customs tariff is announced after the most strict border security agreements.

February 13

Trump announces the fair and mutual plan to deal with “unfair” commercial practices against the United States, which is scheduled to enter into force on April 2.

March 4

Customs duties enter the goods from Canada and Mexico-with some exemptions-the implementation space after a one-month stop, along with an additional tariff of 10 percent on Chinese imports.

March 12

Trump imposes a 25 percent tariff on Steel and aluminum Imports aimed at strengthening local industries.

March 26

Trump announces 25 percent definitions on all imported foreign cars and car parts.

April 2

The mutual definitions of entry into force have been set. Car definitions were set to enter into force.