President Donald Trump has imposed 29 per cent reciprocal tariff on  Pakistan, besides over 180 countries and territories, saying that Islamabad charges 58 per cent  tariff on goods imported from the United States  President Donald Trump has unveiled plans for sweeping new import taxes on all goods entering the   US, in a watershed moment for global trade. As per new US trade policy, the United States will impose 26 per cent on India, 34 per cent on China, 20 per cent on European Union, 10 per cent tariff on Saudi Arabia, Qatar and Afghanistan. 

Donald Trump said that his country will impose 37 per cent tariff on Bangladesh, 24 per cent on Japan, 17 per cent on Israel and 10 per cent on the United Kingdom, adding and 25 per cent additional tax will be imposed on the import of vehicles.  In charts posted on social media, the White House shows the effective tariff rates they claim other countries impose on American goods, including by “currency manipulation and trade barriers.”  An adjacent column shows the new tariff rates the US will impose on each country or territory, including the European Union.

The reciprocal rates are not necessarily the only US tariffs these countries will face.  In addition to the sweeping country-by-country tariffs announced, Trump also imposed a 10% baseline tariff that effectively ensures a tariff on any country that is not among the more than 180 singled out.  “All articles imported into the customs territory of the United States shall be, consistent with law, subject to an additional ad valorem rate of duty of 10%,” unless otherwise noted, the executive order signed this afternoon reads.  Trump also reserves the right to raise this baseline rate “should US manufacturing capacity and output continue to worsen.” 

Pharmaceutical products are among the goods that will not be subject to the reciprocal tariffs announced today, according to a White House fact sheet.  But Trump has not ruled out his plans to impose pharmaceutical-specific tariffs sometime soon.  Other goods not subject to the reciprocal tariffs include copper, semiconductors, lumber, bullion, energy and certain minerals that are not available in the U.S., the fact sheet said. It also includes products already subject to Trump’s recently announced tariffs, including steel, aluminum, autos and auto parts. 

Credit: Independent News Pakistan (INP)