Trump’s torque to impose customs duties that speed up inflation economy

US President Donald Trump said that he intends to impose customs duties on cars “within 25%” and similar fees on semiconductors and pharmaceutical imports, the latest measures in a series that threatens to turn international trade upside down. This would increase the prices remarkably in the United States and thus increase the rate of inflation and influence the country’s economic policies.

On Friday, Trump announced that the fees on cars will enter into force on April 2, which is the day after that his government members submit reports that define the options available to a set of customs duties on imports as part of his endeavor to reshape global trade.

Trump has referred to what he called the unfair treatment of US car exports in foreign markets; For example, the European Union imposes 10% customs duties on vehicle imports, or 4 times the rate of fees on US passenger cars currently 2.5%.

However, the United States imposes 25% fees on light trucks imported from countries other than Mexico and Canada, the percentage that makes vehicles very profitable for automobile companies in Detroit (US auto capital).

Pharmaceutical and chips fees

Trump told reporters on Tuesday evening that fees on medicines and chips will also start at “25% or higher, and will rise strongly throughout the year,” adding that it aims later in the year to give companies a “small opportunity” to transfer their operations to the United States.

Trump did not specify an appointment to announce these drawings, and he said he wanted to save some time for drug and chips to create factories in the United States so that they could avoid customs duties.

https://www.youtube.com/watch?v=jojtz9apqsc

Since his inauguration 4 weeks ago, Trump made the following procedures:

• Imposing 10% customs duties on all imports from China, in addition to the existing fees, due to the failure of China to stop trafficking in fentanel, according to his justification.
• He also announced customs duties by 25% on goods from Mexico and Imported Energy from Canada before it was refuge for a month.
• The date of March 12 was set as an appointment to start imposing 25% fees on all types of steel and aluminum, which eliminates the exemptions in Canada, Mexico, the European Union and other commercial partners.
• Last week, he directed his economic team to develop plans to impose counter -fees commensurate with the fees rates for each product of each country.

Inflation

The new customs duties would increase prices within the United States, according to experts and media analyzes based on the increase in the cost of cars, chips, medicines and other commodities under the customs duties that are imported.

The annual inflation in the United States continued last month, increasing 3%, exceeding experts who expected it to 2.9% on an annual basis.

On the other hand, Jerome Powell, the head of the Federal Reserve (US Central Bank), said that the bank is not in a hurry to reduce the short -term interest rate with the continued rate of inflation over the level of 2%, which is the goal set by the council to change the interest rate.