Kathmandu. US President Donald Trump has launched a tariff war against the world since he became president. He has not left America’s allies in this tariff war.
The US’s reciprocal tariffs have been implemented since April 2. Trump has warned that all countries in the world will be affected by this. Trump said on Monday, ‘The tariffs I have announced will be relatively low compared to the tariffs imposed on US imports by other countries.’
Trump has called April 2 ‘Liberation Day’ for American businesses. Still, the world is not sure where Trump’s tariff frenzy will end.
What is a fair and reciprocal tariff plan?
On February 13, Trump announced a plan to review tariffs and trade policies imposed by other countries on American exports. He called it a fair and reciprocal tariff plan. Under this, the US will impose the same tariffs on American goods as other countries have imposed. Trump said, “Many U.S. trading partners have taken advantage of low U.S. tariffs while maintaining high tariffs on U.S. goods.”
Trump’s move is likely to hit emerging market economies in Africa, Latin America, South Asia, and Southeast Asia the hardest. Emerging economies have long used high tariffs as a way to protect their developing domestic industries and help these sectors compete against established foreign competition.
Trump’s goal is to reduce the U.S. trade deficit and increase the competitiveness of domestic industries and U.S. manufacturers. He wants to use tariffs to finance future tax cuts.
Which country has the largest trade deficit?
The United States has the largest trade deficit in the world. According to 2023 data, the United States imported $1.1 trillion more than it exported that year. The US trade deficit has been steadily increasing since 2019 and has exceeded $1 trillion for 4 consecutive years.
According to 2023 data, the country with the second largest trade deficit is the UK, with a trade deficit of $271 billion. This is followed by India with a trade deficit of $241 billion, France with a trade deficit of $137 billion, and Turkey with a trade deficit of $106 billion.
Which country does the US have the largest trade deficit with?
In 2024, the US had a trade deficit with 92 countries and a trade surplus with 111 countries. The US has the largest trade deficits with its three major economic partners, China, Mexico, and Vietnam. The US-China deficit in 2024 was $295 billion. The US-Mexico trade deficit was $172 billion and the US-Vietnam trade deficit was $123 billion.
Despite imposing tariffs on China seven years ago, the US continues to run the largest bilateral trade deficit with China. The main reason for this is the strong consumer demand for Chinese goods and the dependence of American companies on China in the global supply chain.
When did Trump impose tariffs on China?
Trump first imposed tariffs on China in March 2018, citing alleged intellectual property theft and a desire to reduce trade imbalances. These tariffs continued under former President Joe Biden and in some cases were increased.
Last February, Washington imposed an additional 10 percent tariff on China. In response, Beijing imposed retaliatory tariffs on US imports of crude oil, agricultural machinery, large-displacement vehicles and pickup trucks. In March, Trump doubled the additional tariff rate on Chinese imports to 20 percent.
Why does the US have the lowest tariffs in the world?
American tariffs were historically very high, especially in the 19th and early 20th centuries. The Great Depression began with the stock market crash of 1929. US President Herbert Hoover signed the Smoo-Hawley Tariff Act in 1930. Its purpose was to protect American farmers by imposing broad tariffs on agricultural and industrial imports. However, many countries imposed retaliatory tariffs. That weakened the U.S. economy.
The Reciprocal Trade Agreement Act of 1934 signaled a shift away from American protectionism. It allowed the president to negotiate lower tariffs with foreign governments and open the door to more liberal global trade. –With the help of the agency
