The president of the United States, Donald Trump, decided to give relief to Mexico and Canada by extending the pause that had determined a month ago for the products covered by the Free Trade Agreement T-MEC, the White House announced in a statement on Wednesday, although he did not explain for how long that pause will be or offered details about the reasons for his decision.
On March 4, Trump imposed 25 % tariffs on imports from Canada and Mexico, but established a month moratorium for the products of those 2 countries covered by the T-MEC Free Trade Agreement, which includes from agricultural products to car parts or certain types of machinery.
That end of that moratorium was this April 2, so the US could have begun to apply tariffs to goods covered by the T-MEC, which would have meant in practice the death of the treaty. However, he decided not to do it, according to the White House.
This Wednesday, President Trump announced a minimum 10 % tariff for dozens of countries in the world and another additional lien for which Washington considers “worse offenders” for his commercial and fiscal barriers to US products.
The White House spread a table in which you can see the tariffs that will have to pay 184 countries, plus the European Union (EU). Specifically, the EU will be subject to a tax of 20 %, while several Latin American countries such as Argentina, Brazil or Chile will be subject to the minimum of 10 %.
Neither Mexico nor Canada appear in that table released by the White House.
However, imports from both countries, the two largest business partners in the US, will continue to be subject to a 25 %tariff, in addition to another 25 %tariff for steel and aluminum, which will raise the price of those materials at 50 %.
In addition, the oil and gas that Canada matters to the US is subject to a 10 %tariff.
“This is one of the most important days, in my opinion, in the history of the United States. It is our declaration of economic independence,” said the president in a great event in the Rosalheda of the White House surrounded by manufacturing workers.
The Republican leader, who for weeks had baptized this day as the ‘Day of Liberation’, appeared to give the details of the expected bundle of taxes that he will impose in “retaliation” by the barriers that are imposed on US exports worldwide.
Asia and Europe, the greatest impacted
Thus, USA will impose additional tariffs on very important commercial partners of US companies: 34 % for China imports (now taxed with 54 %), from the additional 20 % to the EU or from 24 % to Japan.
Taiwan, a vital partner in semiconductors, will suffer an increase of 32 %; India, 26 %; South Korea, a powerful automotive or electronic exporter, 25 %, and Israel, 17 %.
“One thinks of the European Union that is very friendly: they scam us. It is very sad to see it. It is so pathetic; 39 % (they take advantage of us), we are going to collect 20 %,” he explained.
The president said, however, that his tariffs are of a “friendly” nature, since the tariffs imposed are half of what the White House calculates that each nation imposes on average the American imports.
The president showed a table that also establishes 10 % tariffs for several Latin American countries, such as Argentina, Brazil, Colombia, Chile, Ecuador, Guatemala, Honduras, Peru, Dominican Republic and Costa Rica. These countries, therefore, will only be subject to the minimum of 10 % that the United States has imposed.
Other Latin American countries will be subject to higher tariffs such as Venezuela, which will pay 15 % to export to the United States, and Nicaragua, gold exporter and clothing to the US, 18 %.
As explained in a call with the press of high US officials, the minimum 10 % tariff will enter into force on Saturday, April 5, while the additional part that affects each nation will begin to be applied on day 9.
To impose these tariffs, Trump has declared a “national emergency” claiming that the current commercial situation implies a risk to the security of the United States, those officials detailed.
Canada will fight steel, aluminum and car tariffs
The Canadian Prime Minister Mark Carney said that although the measures announced by the president of the United States, Donald Trump, preserve “important elements” of the bilateral relationship, Canada will fight the tariffs that are maintained for the sectors of the steel, aluminum and car.
Carney declared that “from tonight, tariffs on the automobile sector will enter into force and USA has indicated that there will be additional taxes in strategic sectors,” which will impact “directly millions of Canadians.”
