Author: Unknown
Published on: 04/02/2025 | 00:00:00
AI Summary:
Trump has agreed to pause 25 percent tariffs on imports from Mexico and Canada. But the pause is only for a month, and a 10 percent tariff that Trump announced on Chinese imports kicked in on Tuesday morning. The threat of an all-out multifront tariff war still looms. Trump’s threats have also spooked global markets and drawn condemnation. On Saturday, Trump declared a state of emergency by invoking the International Emergency Economic Powers Act (IEEPA) and imposed tariffs on the three countries. These tariffs were to come into effect from 12:01am EST (05:01 GMT) on Tuesday. Canada and Mexico announced that they would each send 10,000 soldiers to their borders to crack down on undocumented migrants trying to enter the US. But this reprieve is temporary and does not extend to China. The law was named after its top supporters, Republican Senator Reed Smoot of Utah and Republican Representative Willis Hawley of Oregon. Canada slapped tariffs on 16 US products which accounted for about a third of US exports at the time, according to US-based nonprofit research organisation, the National Bureau of Economic Research (NBER). The slowdown of trade weakened the US economy. By 1933, US Exports dropped by 61 percent. France, West Germany, Italy, Belgium, the Netherlands and Luxembourg increased their tariff on US poultry to 13.43 cents (around $1.4 today), per pound of chicken. Between 1962 and 1963, US global chicken exports dropped by about 30 percent. The “chicken tax” on light trucks remains in force. This has led to a cat-and-mouse game between foreign manufacturers trying to access US markets. 1987: Tariffs on Japanese automobiles President Ronald Reagan imposed 100 percent tariffs on $300m worth of Japanese imports. The Reagan administration said it had imposed these tariffs as a result of Tokyo reneging on terms of a 1986 semiconductor trade agreement with Washington. Japan did not retaliate. In retaliation, the US imposed 100 percent tariffs on European products. It was bananas for brie. The resolution began with the Geneva Banana Agreement. Trump’s first term as president was from 2016 to 2020. In June 2018, Trump imposed 25 percent tariffs on more than 800 products from China. Beijing responded with a retaliatory 178.6 percent tariff on sorghum from the US.
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Summary: 396 words
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