Following a 90-day tariff moratorium, US President Donald Trump released an eight-point list of non-tariff cheating tactics. This includes issues such as currency devaluation, transhipping, and dumping, highlighting the risk of strained relationships.
Tariff War: Following a 90-day halt on tariffs, US President Trump took another significant step. He released a new list outlining eight major points of "Non-Tariff Cheating." These points include serious trade-related fraudulent practices such as currency devaluation, transhipping, and dumping at below-market prices. Trump stated that engaging in non-tariff cheating could negatively impact a country's relationship with the United States.
Trump Issues Stern Warning
According to Donald Trump, some countries deliberately devalue their currencies, making US products more expensive in their markets and their exports more competitive in the US market. Trump called this an unfair trade tactic and stated that the US might consider severing ties with countries engaging in such practices.
Furthermore, Trump stated that some countries have resorted to fraudulent techniques such as high VAT on imports and dumping goods at below-cost prices. He warned that these practices are not only against US trade policy but could also be detrimental to global trade.
Japan's 'Bowling Ball Test'
Trump cited Japan's "Bowling Ball Test" as an example, claiming that Japan uses a deceptive test to prevent the sale of American cars in its market. In this test, a bowling ball is dropped from 20 feet onto the hood of an American car; if a dent appears, the car cannot be sold in the Japanese market. Trump characterized this as an egregious example of unfair trade practices.
90-Day Tariff Moratorium
However, Trump imposed a 90-day moratorium on tariffs imposed on all countries except China. He stated that over 75 countries are negotiating with the US, prompting the tariff suspension. During this period, only a 10 percent reciprocal tariff will be applied to all countries.
List of Key Points
- Currency Devaluation
- Transhipping
- Dumping
- VAT on Imports
- Government Subsidies on Exports
- Underpricing of Goods
- Unequal Tariffs on Exports
- Illegal Trade Practices
