New tariffs introduced by US President Donald Trump have come into force. This will be a new challenge for the global economy, UNN reports with reference to Bloomberg.
Details
According to Bloomberg Economics, Trump's actions will generally lead to an increase in the average US tariff rate to 15.2%, which is significantly higher than last year's level of 2.3% and is the highest indicator since World War II.
After a series of negotiations, the European Union, Japan, and South Korea agreed to a 15% tariff on their goods, including key exports such as automobiles, which would otherwise have been subject to a 25% tariff. Other countries were assigned rates ranging from 10% to significantly higher.
At the same time, the Swiss leader failed to achieve a reduction in the 39% tariff, and Trump raised tariffs on Indian goods to 50% due to the purchase of Russian oil.
Negotiations on raising tariffs on goods from the three largest US trading partners - Mexico, Canada, and China - are taking place separately. Trump also promised to soon announce tariffs on critical industries, including pharmaceuticals and semiconductors.
In addition, the US president promised that raising tariffs would reduce the trade deficit and force companies to return production to the US. However, critics argue that this could lead to uncontrolled inflation and a shortage of goods in stores.
Moreover, Trump's tariffs have caused chaos in the global economy since their announcement and subsequent suspension in April of this year. This has led to months of tense negotiations with trading partners.
Recall
US President Donald Trump said that the imposition of sanctions against India is only the first step. According to him, a significant expansion of the list of secondary restrictions is expected.