- विज्ञापन -
Washington, July 12: US President Donald Trump has announced a 30% tariff on Mexico and the European Union. He said that tariffs will be imposed on goods coming to the US from these two countries from August 1. He informed about this step on his ‘Truth Social’ platform.
Trump also threatened both of them that if they retaliate, the tariff rates will be increased further.
Trump clearly wrote in the letter-
If you retaliate and raise tariffs, whatever the percentage is, I will add it to our 30%.
This is the same type of letter that Trump has sent to many business partners around the world, in which he talks about imposing heavy tariffs on foreign goods coming to America.
Talks on tariff were going on for 6 months
The European Union and Mexico were negotiating with the US for the last 6 months regarding tariffs. But Trump’s decision has made it clear that a deal could not be reached between them.
The European Union is the third largest economy in the world. It includes 27 countries of Europe. Every day, trade between the US and the European Union is around $3.5 billion. Mexico is the largest trading partner of the US.
Trump said- trade deficit with EU is very high
In a letter to the President of the European Union, Trump said that this tariff will be implemented from August 1. He also clarified that if any European company transships its products to America via another country, then the same tariff will be imposed on them as well.
Trump argued that the trade deficit between the United States and the European Union was too large, and that the 30% tariff was a necessary step toward correcting it.
He also offered European companies that if they started manufacturing their products in the US, they would not have to pay tariffs, and the US government would help with approvals in a quick and professional manner.
Trump blames fentanyl smuggling
In a letter to the President of Mexico, Trump said that this tariff is being imposed due to the spread of fentanyl drug in Mexico. He described Mexican drug cartels as the worst in the world and said that these cartels are bringing deadly drugs like fentanyl to America.
Trump said that Mexico has failed to stop these cartels. That is why, now America is imposing tariffs on all products coming from Mexico.
US free trade agreement with Mexico
It is worth noting that America has a free trade agreement with Mexico. Under this, there is no tariff on any kind of import-export between the two countries. Trump had signed the North America Free Trade Agreement (NAFTA) with Mexico and Canada during his previous tenure.
Trump’s tariffs also hurt America
According to CNN, the automobile industry is a major contributor to Mexico’s economy. About 25% of vehicles sold in the US are made in Mexico. Increasing tariffs will increase the price of these vehicles in the US.
Mexico’s economy minister said that 88% of pick-up trucks sold in the US are made in Mexico. These are sold in large numbers in rural areas of America, where Trump has received huge votes.
If Trump imposes tariffs on goods coming from Mexico, then the price of vehicles can increase by up to 3 thousand dollars. This will not only cause losses to American companies, but will also have a bad effect on the American economy.
According to experts, the decision to increase tariffs could prove to be bad for American companies. They say that this tariff could have a major impact on the profits of the ‘Detroit Three Automakers’.
The Detroit Three include General Motors, Ford and Stellantis. These three are the largest car manufacturing companies in America. These companies manufacture their cars in Mexico and sell them in America.
