US launches reciprocal tariff plan regardless of allies or opponents

US President Donald Trump has signed into law a plan to impose indiscriminate reciprocal tariffs on allies and rivals, marking a significant escalation of a trade war that economists say could lead to domestic inflation.

Manzanillo seaport in Manzanillo (Mexico) on February 14, 2023

"On trade, in the interest of fairness, I will impose reciprocal tariffs, meaning the United States will tax any country that taxes the United States. No more, no less," Reuters today, February 14, quoted President Trump at a press conference in the Oval Office.

Mr. Trump signed a plan directing his team to begin matching tariffs with countries that have imposed tariffs on the United States, while also tackling non-tariff barriers such as vehicle safety regulations that limit the amount of goods imported from the United States.

President Trump's February 13 directive opens the door to weeks or months of investigations into tariffs imposed by other countries on American goods and possible retaliation.

The US administration’s targets include China, Japan, South Korea and the European Union (EU). President Trump’s latest move has raised concerns about the risk of a wider trade war globally and the threat of escalating inflation in the US, Reuters reported citing analysts’ warnings.

Mr. Howard Lutnick, the candidate for the position of US Secretary of Commerce, said that President Trump's administration will investigate tariffs on each country and everything will be completed by April 1.

Before Mr. Trump met with the press in the Oval Office, an unnamed White House official said the group of countries with the largest trade surpluses with the US would be investigated first, as well as countries imposing the highest tariffs, according to AFP.

According to this official, the taxes will be adjusted to suit each US trading partner, while considering the tariffs that partners are applying to US goods.

Taxes such as value-added tax (VAT) are also included in the review plan, because according to the Trump administration, these are "discriminatory" taxes.

Source: https://thanhnien.vn/my-khoi-dong-ke-hoach-thue-quan-doi-ung-khong-phan-biet-dong-minh-doi-thu-185250214062018623.htm