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WORLD leaders are having an escalation in the US trade war, with Donald Trump to reveal a major rates on imported goods.
The US president will unveil a series of fresh rates on the so -called “liberation day” in an effort to increase homemade production and reduce the imbalances of the trade.
The levies are likely to range from tax on imported agricultural products to reciprocal rates on the countries with ‘unfair tax’ on US goods.
But some countries will be hit harder than others, with a handful already wearing the bulk of Trump’s trade war.
What are the rates and who is affected?
All countries worldwide dealing with the United States are at risk of rates on the so -called “liberation day” of Mr. Trump to experience.
The United States imported about $ 3.3 trillion goods from abroad last year, and the latest reports of the Washington Post claim set up the White House setting up the rates “of about 20 percent on most imports to the United States”.
As it seems now Taxation.
But the value of tax -struck imports will increase at a series of reciprocal rates that Donald Trump must be announced in the coming hours, plus levies on Venezuelan oil importers, and possible undefined rates on agricultural products from overseas.
“To the Great Farmers of the United States: Get ready to sell many agricultural products in the United States,” Trump announced at Truth Social in early March. ‘Rates will go on external product on April 2. To have fun! ‘
Mr. Trump warned that “all countries” will be affected by the imminent reciprocal rates – although a statement, along with its presidential memorandum, suggested in February that countries that have either a lack of trade with the US – meaning they export more than they import – or higher rates on US products.
The memorandum says that this “unfair” tax on US goods costs more than $ 2 billion annually.
But from Tuesday night, it is still unclear which countries will be hit by the latest round of rates, and to what extent, and therefore economists cannot estimate the value of the trade affected.
Instead, US Treasury Secretary Scott Bestent singled out a “top 15 percent” of countries that trade heavily with the US and impose high rates and barriers to imports – but would not mention it, or provide more details on what the percentage figure was.
Another member of the National Economic Council of Mr. Trump said the administration targets countries that were in a trade deficit with the US; amounting to a total shortage of goods of $ 1.2 trillion in 2024.
Countries exporting more to the US than they import include China, the EU, Mexico, Vietnam, Ireland, Germany, Taiwan, South Korea, Canada, India, Thailand, Italy, Switzerland, Malaysia, Indonesia, France, Austria and Sweden.
The most likely scenario is that countries will be affected in both groups, with Trump’s memorandum that directly exclaims France, Brazil, Canada, India, China and the EU as a whole.
Despite not being in a trade deficit, the UK is likely to be affected, with the White House, including value added tax (VAT) in his list of “unfair, discriminatory or extraordinary tax imposed by our trading partners on US businesses, workers and consumers”.
The British efforts to negotiate an agreement with the US for exemptions continued until Tuesday night.
The ‘big three’ countries that will suffer the most
Canada, Mexico and China – the only three countries facing targeted rates so far – will lose the most as the trade tariffs of Mr. Trump.
For Canada, Mr. Trump already applied a 25 percent rate to goods with temporary exemptions for items, including textiles and clothing, with imports of approximately $ 253 billion affected.
But with the temporary exemptions that expire tomorrow, the figure is likely to rise for the country that imported about $ 421.2 billion worth of goods to the US in 2024.
For Mexico, $ 236 billion of the country’s goods of $ 507 billion exported to the US – about 47 percent – currently under 25 percent rates, while exemptions are in place. Again, releases expire on April 2.
For China, $ 430 billion worth of goods exported to the United States has already been hit by 20 percent rates, according to the Tax Foundation.
But these figures do not include the additional rates on steel and aluminum, nor the 25 percent imported on cars and vehicle parts from abroad.
According to the Center for Strategic and International Studies (CSIs), which is the various rates that Mr. Trump introduces, has the potential to be cumulative, which offers great concern for the three countries in particular.
Countries can face a combination of nationwide, reciprocal and operational -specific rates on the same goods, the CSIs warn.
Heavy rates on foreign vehicles
Trump’s latest sector -specific tariff pointed to the automotive industry, with a 25 percent tax on vehicles and auto parts imported from April 2 from abroad.
Motor vehicles imports represent $ 458 billion to the US trade, and has grown by almost a quarter since Covid with about eight million cars imported in 2024.
The countries that will suffer the most are once again Mexico, Canada and China; But also Japan, South Korea and Germany, according to figures from the US Bureau of Economic Analysis (USBea).
Top brands such as Jaguar Land Rover, Volvo, Volkswagen and Mercedes-Benz manufacture the majority of their US sold cars abroad, and are likely to suffer most from the rates.
But homemade car brands such as General Motors (GM) and Ford are also at risk, with both American staples with car factories in Mexico and further away.
In addition, businesses producing in the US will face higher costs in supply chains, as imported vehicle parts – worth about $ 86 billion last year – are also subject to the 25 percent rate.
Extra levy for Venezuelan oil buyers
What’s more, just last week Mr. Trump announced that it would launch a 25 percent levy on any country importing oil and gas from Venezuela – and on Venezuela himself, from April 2.
According to the tax foundation, the 25 percent would be above any other existing rates; In the USAs try to “Cut off the financial lifeline of the corrupt regime of Nicolás Maduro”.
The US itself is one of the most important importers of Venezuelan oil, behind only China. Other buyers are India, Cuba and the EU block.
As Mr. Trump follows his plans to effect an additional 25 percent on goods from these countries, China in particular would face significant barriers to trade with the US.
But the biggest loser in the trade war can be everyday Americans.
According to economists, the price of a new car will rise by about $ 3,000, and retaliation for rates in the previous administration has resulted in a loss of $ 27 billion in agriculture exports, which mainly beaten farmers.
Critics believe a blanket tariff on all imported goods – at $ 3.3 trillion in all industries in 2024 – could be a cost to US consumers at the cash register.
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