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The President of the United States, Donald Trump, announced this Thursday the imposition of reciprocal tariffs on countries that impose taxes on products from his country.
The measure aims to balance commercial tariffs, primarily affecting the European Union (EU) and other nations with a significant trade deficit with the U.S.
According to the explanation given by the president in a video released by the White House, the new policy states that if a country imposes a tariff on American exports, the U.S. will impose an equivalent fee on their products. "What a country makes us pay, we will charge them the same, no more, no less," Trump stated from the White House.
Additionally, Trump harshly criticized the EU, stating that it uses VAT (Value Added Tax) as a "hidden tariff," which harms American products in the European market.
According to the agency EFE, the automotive sector would be one of the most affected, with a potential increase in tariffs of up to 27% on imported vehicles. Currently, Washington applies a tariff of 2.5% on imported vehicles, while the EU imposes a 10% tariff, in addition to the minimum 17% VAT.
Therefore, under the new policy, the U.S. would apply an equivalent tariff, adding a 10% duty and the corresponding VAT percentage, which could raise the total rate to up to 27%.
Warning to the BRICS
In his statement, Trump also issued a strong warning to the BRICS bloc (Brazil, Russia, India, China, and South Africa), threatening to impose a 100% tariff if they attempt to undermine the dollar in international trade.
"If the BRICS play with the dollar, on the same day we will impose a 100% tariff," warned the leader.
The measure is part of Trump's strategy to use tariffs as a tool in trade and policy negotiations, aiming to gain concessions in trade, migration, and security.
Frequently Asked Questions about Trump's Tariffs on the EU and BRICS
What does Trump's reciprocal tariff policy consist of?
Donald Trump's reciprocal tariff policy states that if a country imposes tariffs on American exports, the United States will impose an equivalent fee on products from that country. This measure aims to balance trade tariffs and primarily affects countries with a significant trade deficit with the United States, such as the European Union.
How do Trump's tariffs impact the automotive sector?
Trump's tariffs could raise fees by up to 27% on imported vehicles to the United States. Currently, a tariff of 2.5% is applied to imported vehicles, while the European Union imposes a 10% tariff, in addition to the community VAT. The new policy of reciprocal tariffs could significantly increase costs for the automotive industry.
What warning has Trump issued to the BRICS group?
Trump has threatened to impose a 100% tariff on BRICS countries if they attempt to weaken the US dollar in international trade. This measure is part of his strategy to protect the dollar's dominance and to use tariffs as a pressure tool in trade negotiations.
Why does Trump consider the EU VAT to be a hidden tariff?
Trump argues that the EU's VAT acts as a hidden tariff because, while it is not a tariff in itself, it increases the cost of American products in the European market, hurting their competitiveness. This perception reinforces his critical stance towards the European Union's trade practices.
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