Crazy! Trump: 25% tariffs have been changed to 250%! Threat allies to attack China
Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, focusing on markets such as Europe, America, Canada, Australia, Southeast Asia, etc., and is more than the owner of the cargo owner.
On March 8, US President Trump suddenly declared after giving a grace period of only one day for a month of tariff exemptionNew tariffs will be imposed on Canadian wood and dairy products, of which 250% tariffs will be imposed on dairy products.
According to Reuters' draft White House executive order,The United States not only plans to charge fees for Chinese-built or flirting Chinese-flagged ships to dock in U.S. ports, but also urges allies to take similar actions, otherwise they will face retaliation.
250% tariff on wood and dairy products
On March 4, the United States officially imposed a 25% tariff on goods imported from Canada and Mexico. However, just two days later, on March 6, Trump announced that a one-month tariff exemption would be given to goods compliant with the USCGT Trade Agreement (USMCA), a decision that once gave Canadians a little relief.
However, the situation changed again on March 8, Beijing time (March 7, local time in the United States). After only one month of tariff grace was given to Canada, US President Trump said that he would impose new tariffs on Canadian wood and dairy products as early as the 7th, including 250% reciprocal tariffs on dairy products.
In a speech at the Oval Office of the White House that day, Trump said, "For many years, Canada has been exploiting us in wood and dairy products," and mentioned that Canada imposes about 250% tariffs on American dairy products and "extremely high tariffs" on wood.
Trump said that the United States will impose tariffs of the same amount on the same amount, which may be implemented as early as the 7th, or may be implemented until the 10th or the 11th.
Trump stressed in his speech: "Canada has been exploiting us on wood and dairy for years, and we may take action as early as today, or wait until Monday or Tuesday. We will charge the same fee. It's not fair, it's never fair, they treat our farmers badly." At the same time, he also defended the frequent changes in his tariff policy in the short term, saying "there will always be some modifications" and "If you have a wall in front of you, sometimes you have to go around the wall instead of going through it."
The US tariff policies on Canada and Mexico have experienced many twists and turns in a short period of time, from formal tariff collection to partial exemptions to imposing high tariffs on threats to specific commodities, a series of changes reflect the complexity and uncertainty of current international trade relations.
Instigate threats to allies and attack Chinese ships
According to Reuters, according to a draft executive order obtained by the White House, the United States not only plans to charge fees for any ship that contains Chinese-built or flew Chinese flags to dock at U.S. ports, but will urge allies to take similar actions, otherwise they will face retaliation.
Reuters reported on Thursday that it reviewed the draft executive order, which was released on February 27 with the goal of revitalizing the U.S. domestic shipbuilding industry and weakening China's influence on the global shipping industry. The draft executive order recommends levying fees for ships entering U.S. ports, "as long as the ship is built in China or has a fleet of ships flying the Chinese flag." The draft also calls on allies and partners to cooperate to take similar actions, otherwise they will face the risk of retaliation.
Specifically, the draft executive order suggests that different fees be charged to Chinese ship operators entering U.S. ports, operators owning Chinese-made ships, and operators who order Chinese ships. in:
The charges for Chinese ship operators can be up to million each time they enter a US port; for operators with Chinese-made ships, the charges for each entry of US ports can be up to .5 million based on the proportion of Chinese-made ships in the fleet; for operators who order Chinese ships, the charges for each entry of US ports can be up to million based on the proportion of ships ordered from Chinese shipyards. At the same time, operators using US-built ships for transportation will receive certain fee reductions.
The draft executive order originated from a proposal made by the U.S. Trade Representative Office last month. However, it is worth noting that the new draft does not include the specific wording originally proposed by the Office of the United States Trade Representative: that is, when ships built in China account for 25% or more of the total number of ships operated, planned to be delivered or ordered, a port fee will be imposed on the relevant fleet. In addition, the draft does not provide a specific assessment of the US dollar value and how the fees are calculated.
If the plan is implemented, it may cause a significant cost burden on large container transport companies such as COSCO Shipping, Switzerland Mediterranean Shipping, Denmark Maersk Shipping, Taiwan Evergreen Shipping, and ship operators that transport bulk groceries, fuels and cars. MSC (Mediterranean Shipping) CEO Soren Toft said earlier this week that as the world's largest container shipping company, they may reduce the number of visits to U.S. ports to limit the impact of new fees.
In addition, the draft calls on U.S. officials to work with allies and partners to take similar actions to jointly respond to China's so-called unfair trade practices in the fields of maritime, logistics and shipbuilding. Trump's executive order plans to take 18 actions, including charging fees for Chinese-made ships entering U.S. ports, tariffs and other fees for cranes, and setting up shipping offices, according to an executive order reviewed by the Wall Street Journal.
However, the news has attracted a lot of criticism, with many analysts saying that the policy could lead to a sharp increase in global shipping costs and ultimately transferring the pressure to businesses and consumers. At the same time, the US domestic shipyards do not seem to have enough technology and manpower to replace China's position in the global market.
According to the Center for Strategic and International Studies, the annual volume of merchant ship freight produced by Chinese shipyards accounts for more than 50% of the global total, compared with only 5% in 1999. By contrast, the U.S. shipbuilding currently accounts for only a small part of the industry's output.
