The world leaders study how to react to the rate of the President of the United States; Several speak of the need to open negotiations with the United States.
The President of the United States Donald Trump has announced that his country will impose a 10% rate on all imports in the United States, with even higher rates for nations that have higher commercial barriers against Americans.
Economists say that the measure, which enters into force Saturday (5/4), is a turning point in global trade.
The European Union has described measures as a “big blow to the world economy”. China promises retaliation and Australia replied that “this is not the act of a friend”.
Brazil is not in the list of countries most affected by the largest rates – and will have its products exported to the United States taxed by 10%, the minimum rate established by Trump.
Other countries that will be taxed by 10% include: United Kingdom, Singapore, Australia, New Zealand, Turkey, Colombia, Argentina, El Salvador, United Arab Emirates and Saudi Arabia.
Other countries and regions – some considered allies close to the United States – will suffer from larger rates: European Union countries (20%rate), China: (54%), Vietnam (46%), Thailand (36%), Cambodia (49%), South Africa (30%) and Taiwan (32%).
The question that is asked to everyone is now: what will be the reaction of other countries against Trump and the Americans? Will there be retaliation against the United States – with the imposition of new rates? Or will countries avoid commercial tensions?
Brazil and 10% rate
The Brazilian government did not report whether to take revenge or not.
In a declaration issued by the Ministry of Development, Industry, Commerce and Services (MICCO) and the Ministry of Foreign Affairs (MRE), the Brazilian government said that “the decision taken by the United States government”, which remains open to dialogue, is regretted, but assesses “all the possibilities of action”, including the possibility of resorting to the world commercial organization (OMC).
In the announcement, Trump said that the percentages charged by Brazil would be close to those that the country would charge imported US products.
Batg Pactual Batg economist, Iiana Ferrão, analyzed the announcement at the request of BBC News Brazil and said how rates should hit Brazil.
“All Brazilian products imported from the United States will be subject to an additional rate of 10%, except when higher specific rates are already applying, as in the case of steel and aluminum, 25%charged,” said the economist.
The executive director of the Eurasia group for the Americas, Christopher Garman, underlines that Brazil has finished with the countries less affected by the announced Trump rates.
“We expected an impact between 10% and 25%. In the end, Brazil came out less affected than other countries, such as those in Asia,” Garman said to BBC News Brazil.
He said that the sectors that should be more affected by the US rates are oil, semi -final products, cellulose and flat parts.
This is also the analysis of Iiana Ferrão. According to her, among the most affected sectors there are iron and semi -corner steel, planes, construction materials, ethanol, wood and their derivatives and oil. The economist said that sectors such as agricultural raw materials and mining should not have important impacts because they do not depend so much on the US market.
According to a document released by the White House shortly after the announcement, the disseminated rates should not overlap with those who previously have been imposed on other products, such as steel and aluminum, taxed by 25% in March and have also affected Brazilian products.
While Brazil was taxed on average, at 10%, Asian countries have undergone much higher taxes.
But for some countries, such as Japan and Vietnam, Trump has announced that he will charge “about half” of what they load from the United States.
“The rates will not be totally mutual. I could have done it, yes, but it would have been difficult for many countries,” said Trump.
The president also confirmed the beginning of a 25% debit of all foreign cars from Thursday (3/4), a rate that should mainly affect Mexico.
What happens now?
The markets have already started reacting to Trump rates on Thursday (3/4).
The exchange of actions in London, Paris and Berlin has strongly fallen to the opening. FTSE 100 and CAC 40 decreased by about 1.4%and 1.7%, but Germany’s Dax has taken the largest blow, going down more than 2%.
German trade is considered particularly vulnerable to rates.
In Europe, which will have 20% rates against its imported products in the United States, leaders have reacted.
There have not yet been immediate retaliation, but several politicians have announced meetings in the next few days to evaluate their reactions.
The head of the European Commission, Ursula von der Leyen, said that new tax imports would have “terrible” consequences for millions of people all over the world.
He said that there is no clear way to face what he called the chaos and complexity that the new Trump rates would have unleashed all over the world.
But the Commission has promised to protect EU affairs, some of which will be more hard affected by others: such as the German car industry, the Italian luxury products and the French wine and champagne producers.
French President Emmanuel Macron convened an emergency meeting of French corporate leaders for this Thursday.
Like the largest single market in the world, the EU can cause damage to the United States, aiming for goods and services, including “great technologies”, such as Apple and mature title.
But European leaders have said that their goal is not to increase tensions with the United States, but to convince Trump to negotiate.
The Italian Prime Minister, Giorgia Meloni, said that although he considered Trump’s wrong rates, everything would have been done to try to reach an agreement with the United States.
Already the United Kingdom Prime Minister, Keir Stmeerer, asked to calm all the leaders. The United Kingdom is about to negotiate a commercial treaty with the United States after the country has left the European Union.
The United Kingdom is among the countries that – such as Brazil – will have 10% rates in their products imported into the United States. This is the smallest level announced by Trump.
Stmerer has not confirmed or discarded British retaliation – and he said that “nothing is out of the question” when it comes to how the United Kingdom can respond to Donald Trump’s expenses.
“Today marks a new phase of our preparation. We have a series of levers at our disposal and we will continue our work with companies from all over the country to discuss their evaluation of the options”.
He also says that “our intention is still to guarantee an agreement”.
Stmerer says we live in a world of change and “we have to face this challenge”.
“Nobody wins in a commercial war, this is not in our national interest,” said Prime Minister.
Several world leaders have spoken of the need to dialogue and negotiate with the United States.
The Minister of the German Economy, Jorg Kukies, told the BBC: “Nobody I spoke with closed the door for the negotiations [com Trump] After the announcement. “
Norwegian Prime Minister Jonas Gahr Støre said his government will play with the United States on “If he has the opportunity to do it”.
The Prime Minister of Thailand Finally Shinawatra said he was willing to send the authorities to speak with the United States. “I think we can still negotiate.”
The Prime Minister of Vietnam Phạm Minh ChÃnh said he is creating a task force to face US rates.
The Minister of the Spanish Economy said that the country wants to achieve a “negotiated situation with the United States on rates”.
The presidency of South Africa has said that the new US rates “affirm the urgency to negotiate a new bilateral and mutually advantageous commercial agreement with Washington”.
Economists warn that this tariff shock promoted Trump will be transmitted to US consumers and could cause a great increase in prices and a recession in the United States and the rest of the planet.
Source: Terra
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