The president of the USA, Donald Trump, said on Wednesday night that his administration was very close to a commercial agreement with India and that an agreement with Europe could be reached, according to Reuters
Trump also said it was too early to describe the perspective of an agreement with Canada. Trump also said that he would probably impose a 10% or 15% tariff to smaller countries.
Outstanding comments
On the tariffs to Canada, it is too early to say.
Very close to the tariff agreement with India
It will probably impose a 10 or 15% tariff to 150 smaller countries.
You will publish a single number for 150 countries.
Market reaction
At the time of writing, the American dollar index (DXY) is quoting 0.02% higher in the day, quoting at 98.30.
Tariffs – Frequently Questions
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
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.
