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- Author, Writing
- Author's title, BBC News World
This Thursday, the new tariffs imposed by US President Donald Trump come into force to more than 90 countries around the world, including six from Latin America.
Shortly before its implementation, the president said that “billions of dollars, mostly from countries that have taken advantage of the United States for many years,” they will begin to flow to the country.
Trump is using its tariff policy to make manufacturing companies again produce in the United States, generating jobs, as well as to achieve political objectives and as a negotiation letter.
But some economists argue that new import taxes will probably move to US consumers and companies.
Trump and Mexican president, Claudia Sheinbaum, announced a 90 -day extension last week during which the 25% tariff on all products from Mexico will be maintained that are not covered by the current free trade agreement between the United States, Mexico and Canada.
This in principle would give time to continue negotiations and reach a commercial agreement before the deadline comes.
“It has been a very good agreement, and places our country in a very good situation,” Sheinbaum said to the press. “We have the best possible agreement.”
For its part, China is also exempt from a new tariff at the moment, thanks to an extension of 90 days negotiated in May and expires on August 12.
The secretary of the American Treasury, Scott Besent, has indicated that his country seeks a commercial agreement with Beijing that helps reduce risks in strategic industries, such as rare earths, semiconductors or medicines.
The affected countries
Last week, the US government announced a revised list of tariffs on imports of dozens of commercial partners and extended the deadline for countries to reach agreements with the United States until August 7.
Some countries have already managed to close trade agreements with the United States, including the United Kingdom, Japan and South Korea.
The European Union also reached an agreement with Washington, in which it accepts a 15% tariff on products from the commercial block.
But many nations still try to conclude agreements to reduce or eliminate what Trump calls “reciprocal tariffs.”
The tariff policy of the US President aims to reformulate the global trade system, in which, in his opinion, the United States is harmed.
In the American continent, the countries affected by the new tariffs are Brazil, Bolivia, Canada, Costa Rica, Ecuador, Guyana, Nicaragua, Trinidad and Tobago and Venezuela.
The products of Bolivia, Costa Rica, Ecuador and Trinidad and Tobago will have the lowest tariff rate of 10%, a reduction of five points compared to the rates announced in April.
But on the other side of the balance are Brazil's exports to the US, which face a 50 %tariff, the highest of all, after Trump accused the South American country of “attacks” to US technology companies and carrying out a “witch hunt” against his ally, the former right -wing right Jair Bolsonaro.
What are tariffs and how they apply
Tariffs are taxes that tax the goods that are imported from other countries.
That tax, which is paid to the Government, must be assumed by the company that introduces foreign merchandise in the country.
Normally, tariffs are a percentage of the value of a product. In this way, a 20% tariff on Chinese products means that a product that is worth, for example, US $ 10, has an additional surcharge of US $ 2.
Companies can choose to transfer a part or the entire cost of customer tariffs.
The United States has usually applied lower tariffs than other countries.
But the US economy, such as that of most countries of the world, is very interconnected with its commercial partners, with manufactures that enter and leave several times from its borders until they become the final product.
This is the case, for example, of the automobile industry, in which aluminum may be imported from a country, it is based on pieces in the US, these pieces are transferred to Canada to be polished, are sent to Mexico to be partially assembled and return to the US.
Image source, Getty Images
In this way, a vehicle, for example, is subjected to different tariffs repeatedly, more expensive the final product.
These tariff rates or customs law vary from one country to another, and are usually lower in the most developed economies.
According to World Bank data, in 2022, the weighted average tariff was 1.49% in the United States, 1.37% in Canada and 1.3% in the countries of the European Union.
In Latin America, moderate tariffs live in Mexico, of 4.8%, with others high as in Argentina, where the average in 2022 was 11.1%.
The general tariffs of 25% and up to 50% to certain products such as those imposed by Trump are very unusual and in recent history they have only applied in moments of commercial war.
Coercion measure
President Trump also announced on Wednesday tariffs of 50% to India for buying Russian oil despite US and European sanctions.
The measure will enter into force on August 27, unless the country stops buying the Russian crude.
Nueva Delhi described the measure as “unfair, unjustified and unreasonable” and promised to protect their national interests.
Trump also threatened to impose a 100% tariff on computer chips manufactured abroad, as a measure to encourage technology companies to invest in the United States.
This measure coincided with Apple's announcement that it would invest US $ 100,000 million in the country.
The main chips manufacturers that have made significant investments in the US seem to have eluded the new tariff. Government officials of Taiwan and South Korea have declared separately that TSMC, SK Hynix and Samsung would be exempt from the new tax.
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