President Trump will hit many countries with new taxes called tariffs. These are fees for things that countries sell to the United States. August 1 is ready to face the highest tax for 50%, while Iraq, Algeria and Sri Lanka face 30% of the tax.
Other nations such as Brunei, Libya and Moldova will pay 25%and the Philippines 20%. Trump says these taxes correct “serious injustices” and business imbalance.
For example, the US is buying $ 5.9 billion from Iraq before it is sold there. Surprisingly, Brazil sells the US less than buying, but still receives the highest tax.
Letters warn 14+ nations
Trump sent warning letters to at least 14 countries and told them their new tax rates if they did not keep Japan and South Korea, great American partners, face 25% of the tax.
Laos and Myanmar got the highest threat to 40%. Some countries recorded lower rates than in April: Cambodian tax dropped from 49% to 36% and bostens from 36% to 30%.
The White House says that these taxes do not add to the top of existing ones, such as 25% of car tax. Shares fell after the news, but Asian markets remained calm.
Shops, delay and reverse
Only the United Kingdom, Vietnam and China have so far avoided the worst taxes. Others are trying to speak before the deadline.
South Korea has promised a “bold action” if necessary and Japan described its tax as “regrettable”. Brazil threatened to hit 50% of the US goods tax. South Africa said Trump used incorrect business data.
Meanwhile, the US economy reduced the last quarter by 0.5% and warns of lack and higher prices. Trump claims that taxes will “replenish” US factories and help consumers.
Deadline 1. August is “solid but not 100% solid,” says Trump.
If the country removes its own business barriers, taxes could drop. But if they defend, taxes could rise. The courts still decide whether Trump is the use of emergency powers for these taxes, with a key hearing set at 31 July. As the conversations continue, the world watches how tariff fury escapes.
(Tagstotranslate) Trump’s tariffs
