① The USA Secretary of the Treasury Scott Bessent stated that President Trump's "reciprocal tariffs" may exceed the range of matching import taxes imposed on USA Commodities by other countries. ② The Trump administration will consider Exchange Rates manipulation, industry subsidies, and labor conditions when calculating new tariff rates.
USA Secretary of the Treasury Scott Bessent said on Tuesday that President Trump's "reciprocal tariffs" are not actually "reciprocal" and may far exceed the range of matching import taxes imposed by other countries on USA Commodities.
Bessent revealed in a recent interview that the Trump administration will consider policies such as Exchange Rates manipulation, industry subsidies, and labor conditions when determining a new tariff rate for a country.
"We will go to them and say, 'Look, we believe the level of tariffs is such that non-tariff barriers, MMF manipulation, unfair financing, labor suppression, if you stop those behaviors, we will not establish tariff barriers,'" he added.
Bessent emphasized that if these countries do not change these policies, "then we will build a tariff wall to protect our economy, protect our workers, and protect our industries."
Recently, Trump has repeatedly emphasized imposing "reciprocal tariffs" on other countries in response to import taxes and other trade barriers on USA Commodities. These tariffs are set to take effect on April 2, and tariffs on Shenzhen Agricultural Products Group will also take effect on the same day. Last month, Trump signed a memorandum requiring relevant departments to determine "reciprocal tariffs" with each foreign trade partner.
Two weeks ago, during a speech at a joint session of Congress, Trump stated that for decades, other countries have imposed tariffs on the USA, and now it is the USA's turn to start imposing tariffs on other countries. Trump admitted that tariffs would create 'a little disturbance,' but it is acceptable.
It is reported that the upcoming tariffs imposed by Trump will target a broader range of policies, potentially giving the President and the government greater leverage over their trade partners, who may face challenges in adapting to Trump's demands. This will also give Trump greater flexibility to adjust or maintain tariffs.
Besent stated that if countries do not follow President Trump's lead and reduce trade barriers, he will raise the tariff wall, as he mentioned in the video, "we will gain a lot of revenue."
He added that the tariffs imposed by Trump on Canada, Mexico, China, the European Union, and foreign Metals will be included in the corresponding tariff rates for each country.
However, for the time being, the White House has not come up with a complete way to determine what Trump refers to as "corresponding tariffs." According to public information, the U.S. Trade Representative's Office, responsible for formulating the corresponding tariff policy, has only over 200 employees in the entire institution. Analysts estimate that it will take at least six months or longer to create such a complex tariff system.
Therefore, White House officials are currently busy dealing with this "corresponding tariff," especially since they need to meet the deadline before April 2. White House Press Secretary Carolyn Levitt previously stated that many plans have been discussed, and when Trump is ready to announce the plan, Americans will hear the policy directly from him.
Editor/lambor