The reciprocal prices of US President Donald Trump should come into force from April 2. He had previously declared that no country would be imposed on “all countries” and not just a small group. Trump said April 2 would be the “liberation day” for the United States.
The United States Secretary of the Treasury, Scott Bessent, recently talked about a few countries with high prices that he described the “Sirth 15” – 15% of American trade partners who impose high prices. Bessent did not disclose the exact name of the countries, but the list probably includes the following names, judging by the report of the trade deficit of the American trade department: China, European Union, Mexico, Vietnam, Ireland, Germany, Taiwan, Japan, South Korea, Canada, India, Thailand, Italy, Switzerland, Maline, and Indonesia.
In addition, the US trade representative (USTR) has also highlighted 21 nations, notably Argentina, Australia, Brazil, Canada, China, European Union, India, Indonesia, Japan, South Korea, Malaysia, Mexico, Russia, Saudi Arabia, South Africa, Switzerland, Tuiwan, Turkey, Turkey United Kingdom and Vietnam.
Trump’s prices should vary from country to country and in all sectors. The administration plans to impose restrictions on the trade of various products, including pharmaceuticals and semiconductors. This decision follows the recent announcement of a 25% levy on imports of cars and parts.
In related development, there has been a recent threat to penalize countries buying Venezuelan oil. This indicates that the administration considers commercial tasks as a versatile tool which can be directed towards a wide range of targets.
The United States has around 12,500 separate entries and applied to trade with nearly 200 countries, which indicates that prices would have an impact on millions of bilateral relations. All this would require a tailor -made reciprocal rate.
Meanwhile, UBS economists have calculated that despite the increase in prices, the average price weighted by US trade would increase by only 1.65 percentage points.
