The US trade representative (USTR) Jamieson Greer said during the Senate Finance Committee hearing on Tuesday that they are currently in conversations with around 50 countries about tariffs, according to Reuters.
Key points
“I had several conversations with Japanese officials last week.”
“The administration of the US president, Donald Trump, wants more access to the market for agriculture.”
“The Trump administration is open to ideas from other countries to achieve a reciprocal trade.”
“China made significant changes at the beginning of the phase 1 trade agreement, but did not comply much.”
“We will work with India to address intellectual property and structural barriers to trade.”
“Higher reciprocal tariffs will take effect tomorrow.”
“Many countries have said they will not retaliate, some have already reduced tariffs.”
“China has not indicated that you want to work towards reciprocity.”
“We see a clear difference between China and other countries that seek to negotiate.”
Market reaction
The mood of the market is still optimistic after these comments. At the time of the press, the S&P 500 index had risen 3.8% in the day.
FAQS tariffs
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.
