Once more, the unpredictable behavior of President Donald Trump of the United States has left the global audience less than surprised. His recent proposal threatening trade wars against over a dozen nations is reminiscent of his familiar aggressive stance. Indeed, his actions do not discriminate between traditional rivals and time-tested allies. Notably, Japan and South Korea, two typically friendly nations, have been targeted in his recent fusillade.
Trump publicly declared his intention to establish new reciprocal tariffs that impact 14 nations, inclusive of Bangladesh, Malaysia, and Cambodia, with the rates ranging between 25 and 40 percent. He cautioned that attempts to reroute exports or retaliate would lead to even steeper tariffs from the United States. Interestingly, India does not appear on the preliminary list of 14 countries, despite currently waiting on a provisional trade agreement with America and the nearing conclusion of a pause on mutual tariffs.
Of the listed countries, six are members of the ASEAN group, the Association of Southeast Asian Nations. Laos and Myanmar notably will be subject to the most significant tariffs at 40 percent. Thailand and Cambodia are other countries due to experience significant pain from these tariffs.
Thailand and Cambodia, nations that have benefited greatly from Chinese investments and have solidified their economic connection with China over the last ten years, are looking at 36 percent tariffs from the United States. By contrast, Indonesia, where nearly one-third of its imported goods originate from China, has been slapped with a reciprocal tariff of 32 percent.
Long-established allies of the United States, Japan, and South Korea, are due to endure tariffs of 25 percent starting from the first of August. However, this could potentially be avoided if they are able to negotiate and finalize trade agreements with the United States before then.
The trade arrangement landscape reveals a consistent pattern; countries that have already agreed, even conditionally, to trade deals, qualify for decreased tariff rates compared to the rates broadcasted in April.
Dispatch of information reveals that to this point, the United States has brokered only two preliminary trade agreements, one each with Britain and Vietnam. Both these nations can breathe a sigh of relief, at least temporarily.
Despite their close ties to the US, Japan, and South Korea, have exhibited hesitancy with regard to making trade concessions. This reluctance is on display even as they grapple with high levies targetting some of their crucial industries.
In response to the imminent new tariffs, ARICS member countries are proactively strategizing to lessen their dependence on the United States. The group has pledged to bolster their partnerships and examine methods of chopping bureaucratic red tape to make trading amongst member nations more streamlined.
Bearing witness to the efforts made by the BRICS group to boost trade within their assembly clearly demonstrates how these newly-imposed tariffs are reshaping the global economic landscape. They are compelling America’s trade partners to redirect their trade flows to other burgeoning markets.
In a surprising move, the Trump Administration’s decision to evade negotiations and enforce pre-determined tariff structures nullifies years of painstakingly negotiated norms of international economic relations. While this might resonate with a domestic audience that has a penchant for economic nationalism, it raises concerns on a global stage.
Such a bold move indeed carries significant risks. It could engender deeper instability throughout the world, trigger retaliatory action from affected trade partners, and eventually, push the United States into self-inflicted isolation from the global trade flows it seeks to control.
While Trump’s style may not be surprising, the longer-term implications of his decisions can’t yet be fully determined. As the world adapts to this new order of trade relations, one can only wait to see how far-reaching the eventual impact is going to be.
Given that the world’s largest economies continue to interactions intricately laced with complexity, there remains a great deal of uncertainty around the repercussions. Thus, only time will tell whether these new impositions will bring about the desired effect or end up having unintended consequences on global trade relations.
The post President Trump Threatens Trade Wars With Over A Dozen Nations appeared first on Real News Now.
About Author
