The announcement by President Trump of radical prices on American trade partners has expanded the flaw between the United States and some of its closest allies while reconfiguring the world economic order.
Mr. Trump’s plan, which he unveiled on Wednesday and calls “reciprocal”, would impose a wave of prices on dozens of countries. Among the major economies most affected by the European Union, which will face 20% of prices within the framework of the plan, and China, which will absorb 34% additional in addition to the existing withdrawals.
“The scope and size of the prices are both substantial and confirm the worst fears of the supporters of free trade,” said Eswar Prasad, professor at the Dyson school at Cornell University. “Trump triggers a new era of protectionism that will affect the world.”
Mexico and Canada, two of the largest trade partners in the United States, would not be subject to new rates beyond the samples that the president had previously announced, on imported vehicles, vehicle parts, steel, aluminum and any other commodity not exchanged under the rules of the American-Mexican Agreement.
The new samples include a line basic price of 10% on all countries, except Canada and Mexico, as well as additional prices based on prices that other nations apply to American exports and other obstacles that the administration has deemed unfair.
Asian countries have been among the hardest. The prices on Japan and India will be more than 20%, with nations such as Vietnam, Cambodia, Bangladesh and Sri Lanka faced with even higher rates.
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