USA has a limited margin to further increase tariffs to China under the law of reciprocal tariffs. But tariff uncertainty remains high; The result of the review of the Phase 1 trade agreement between the US and China of 2020 is crucial. The US Port Tarifa proposal, if implemented, could interrupt global maritime transport, Standard Chartered economists point out.
THE EYE OF THE STORM
“The US has a limited margin to further increase tariffs to China in reciprocal terms, in our opinion, as it approaches the conclusion of its commercial investigations under the reciprocal trade law. Reciprocal tariff Higher than China’s average tariff on the USA even if the US considers VAT as a commercial barrier, the highest VAT rate of China is 13%, even below the current tariff differential between the US and China.
“Trump has already announced a 25% tariff on all cars manufactured abroad (including the pieces), which will soon enter. reached approximately 32%, which is higher than recently announced sector tariffs.
“In addition to tariffs, the US has also tightened the restrictions on the investment, transport and the Chinese AI industry. The US Trade Representative Office (USTR) has proposed entry fees to ports for any transport operator that uses vessels manufactured in China. If the proposal becomes legislation, it will cause significant interruptions in global logistics and create an additional barrier for China’s exports, in our opinion. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
