President Biden Implements Reciprocal Tariffs to Address U.S. Trade Deficits
President Joe Biden has signed an executive order to implement a reciprocal tariff system aimed at rectifying trade practices that contribute to the persistent U.S. trade deficits. This move, announced on the White House's official website, targets imports to balance trade relationships and address economic imbalances.
Economists have mixed reactions to the policy. According to the Peterson Institute for International Economics, tariffs can be a useful remedy in cases of trade discrimination and lack of reciprocity. However, the complexity of global trade dynamics makes the effectiveness of such measures uncertain.
CNBC reports that some economists argue that Value-Added Taxes (VATs) should not be considered trade barriers, as they are applied uniformly across domestic and imported goods. The discussion around these tariffs comes at a time when former President Donald Trump's proposed tariffs are also under scrutiny.
Axios highlights that Europe is closely watching these developments, as the new tariffs could affect sales tax policies and trade relations across the Atlantic. The implementation of these tariffs marks a significant shift in U.S. trade policy, potentially impacting global trade dynamics.
Detailed
Related issues news
What is a US tariff?
A tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight and insurance of imported products. Different tariffs applied on different products by different countries.
Is VAT a trade barrier?
That means a nation's exports are exempt from value-added taxes, while imports (from the U.S., for example) are taxable, he wrote. The World Trade Organization doesn't view this as a trade barrier, economists said.
X talks about this news
Latest
Can you Like
