On April 2, the US president announced the “liberation of America”, imposing 10% duties on all imported products. However, the 10%”horizontal” was added to the duties of different sizes, which Trump had already announced earlier, to products of 70 countries. The US trade war had begun.
In the days that followed, the war escalated until April 9, and after the collapse of international markets, from 70 countries -with the exception of duties in China, 145% -maintaining only 10%duties. Trump’s conversions have confused everyone, but may have begun to seem to be a tariff policy, which the US president is probably intended to follow.
Given that high US duties have been suspended for a quarter, officials from the Trump government, are now giving the impression, according to the Washington Post, that they are preparing to go into separate negotiations with each US-commercial partner, instead of simply asking them to ask them.
What can the US ask for
However, the White House strategy remains unknown. Most likely, the negotiations will be formed according to the problems that the US government is trading between the US and these countries.
For example, among the demands that the US will be negotiating, with countries such as Vietnam and Mexico, to cease, these countries, to operate as intermediate stations for Chinese products, facilitating China to bypass US duties. The US may also ask other Asian countries to impose China duties similar to the US.
Most likely, however, these countries will hardly consent: Vietnam, for example, depends on China for 40% of its imports. The economy of many Asian countries is inextricably linked to China’s economy, and as analysts note, these countries do not intend to easily coincide with Washington against Beijing, and moreover, after the shock they suffered with the recent change in Trump’s economic policy.
Natural gas and beef
In negotiations with Japan, Washington may ask Tokyo to buy larger quantities of gas produced in the United States. From Europe, the US will probably demand the relaxation of the rules for the functioning of technological giants and the removal of restrictions on imports of American beef.
Experts, however, in terms of commerce issues, are doubtful whether such specialized agreements, if they are convened, will be beneficial to the US economy.
“If the plan is to persuade Europe to get rid of strict law for US technology companies and allow the US to export more beef to the EU, then it will have no effect on reducing the US chronic commercial deficit with the rest of the world.”Ends Lori Ulas, director of Think Tank, Rethink Trade, speaking in the Washington Post.
