U.S. President Donald Trump announced plans to impose a 10% tariff on Chinese-made goods as early as February 1, signaling the return of aggressive trade policies under his administration. Trump also instructed federal agencies to investigate discriminatory taxes on U.S. companies and citizens abroad and identify unfair trade practices, ramping up what is being dubbed the “Trumpian tariff and tax storm.”
Speaking at a White House press briefing, President Trump accused China of exporting raw materials for fentanyl, the so-called “zombie drug,” to Mexico and Canada, which he said has contributed to the fentanyl crisis in the U.S. “On that basis, we are discussing a 10 percent tariff,” Trump stated. The U.S. already imposes 15% to 25% tariffs on Chinese imports. Trump also aimed at the European Union (EU), accusing it of imposing excessive taxes on U.S. tech giants such as Google and Apple. “We will impose tariffs on the E.U. to restore trade fairness,” he declared.
On Tuesday, President Trump issued a memorandum titled the America First Trade Policy, directing federal agencies to review and submit “retaliatory measures” against countries that disproportionately tax U.S. businesses. Agencies were given a 60-day deadline to identify and recommend actions against such practices. To further bolster U.S. competitiveness, Trump announced his intention to withdraw from the Organization for Economic Cooperation and Development's (OECD) Global Minimum Tax (GMT) agreement.
Woo-Sun Lim imsun@donga.com