How do I calculate the duties planned? The Donald Trump administration faced this task. alternatively of hiring economists, they decided to usage a calculator and focus on the work an intern could do.
The U.S. President’s environment has revealed that an incredibly simple, primitive method of calculation has been adopted. In fact, this can be done with the simplest spreadsheet. In 1 column we enter the country's trade surplus in exchange with the US. In the second we include his full export. In the 3rd table, we calculate how much the percent of the exchange is surplus. The score is divided in half and... voilà, ready.
Reports from the White home support Bloomberg’s calculations. This is perfectly consistent for China (68 percent surplus, 34 percent duty), the same tariff was calculated for Japan, South Korea and the European Union.
That number is simply a large mistake, the Americans will pay for it.
Usually work rates are calculated in more complicated ways, taking into account different factors. First of all, the expected effect, specified as the protection of any industries, is taken into account. Trump has already made unusual decisions about duties that caused marketplace shortages and an increase in product prices for US consumers.
During his first word as part of the "Americana First" policy, he introduced duties on abroad washing machines. But American companies were incapable to meet request alone. The effect was that the number of washing machines on the marketplace decreased and their prices increased by 34 percent on average. After the duties expired, they fell.
It's the same with cars now. Customs will increase the prices of imported cars, but besides automotive parts and materials imported to American factories. It is besides doubtful that the American automotive manufacture itself can meet demand: half of the cars sold in the US are imported.
Trump's administration has decided to impose duties on almost the world, including deserted islands. "Almost", due to the fact that Russia, Cuba, North Korea and Belarus are not included in the list of countries subject to the fresh duties.
The White home explains that they are not subject to "tariffs" due to the fact that they have already been sanctioned. However, despite sanctions, US trade with Russia amounts to $3.5 billion, of which 3 billion is import," noted Polish Radio reporter Marek Wałkuski.
Customs duties on the European Union and China
Let us remind you: Trump announced "retaliation duties" on import to the US. A 10% fee was introduced for all goods and 25% for cars. The rates proposed by Trump vary from country to country. For the European Union, they amount to 20%, for China to 34% and for Brazil to 10%.
"Now we are going to charge the European Union. They're very tough. Very, very tough traders. You know, you're reasoning about the European Union, very friendly. They're cheating on us. It's so sad. This is so pathetic," said Donald Trump in the White home Rose Garden yesterday.
Customs are to enter into force on 5 April and for selected countries on 9 April. Trump argued that fresh fees would aid rebuild the American economy and make the US "rich again". As we have reported on the subject: European Commission president Ursula von der Leyen powerfully criticised the US President's imposition of a 20% work on EU goods and announced retaliation.
