Dice, Trump and the new « two phases » strategy: the race of the countries to ask for exemptions from the USA

Donald Trump would be evaluating an approach in two phases to his policies on commercial duties, reports A reconstruction of the Financial Times. Trump would use powers rarely used to impose an emergency rates while investigations are completed on the commercial partners in the sights. The proposals of which the administration officials are discussing «would try to anchor the tariff regime At a more solid legal framework, while allowing Trump to raise funds for planned tax cuts, « sources said about discussions to the financial newspaper.

The new rates on April 2nd

Trump promised to reveal his new rates on April 2, defining the event as the « day of liberation » and triggering a race from foreign countries to obtain exemptions. Last Monday Trump promised to impose « substantial » rates on commercial partners of the United States, even if he has hinted that he could « give respite to many », reports the Financial Times.

The duties on Caracas oil buyers

« They made us pay so much that I am ashamed to make him pay what they made us pay, but it will be substantial, » he said, A few hours after announcing new duties on Venezuelan oil buyers, including China. The last contradictory message of the President reflects the debate in progress within his administration on how Trump will apply his new tariff regime and what purpose, records the Financial Times.

Section 301

Among the proposals discussed by his team there is a plan to start the so -called investigations of section 301 on commercial partners. The tools used to hit the partners may include the use of the Internazional Emergency Economic Powers Act Or a little known US commercial law, section 338 of the 1930 Tariff Act, to potentially apply rates up to 50% on commercial partners.

The duties on vehicles

Lawyers and people aware of the plans also say that Trump could apply immediately Rates on vehicle imports on April 2, resurrecting a study on national security in the global automotive industry of his first term. Another recently discussed option, but now considered a remote hypothesis, is a dark rule of US commercial law Note as section 122 of the 1974 trade ACTwhich allows Washington to temporarily impose rates limited to 15% for a maximum of 150 days.

Planned tax cuts

But the administration has not yet defined its approach, given that the purpose of the rates is now evolving. Although Trump has complained about the unjust treatment reserved by the United States to foreign countries, his officials are more focused on the use of duties to increase the revenue intended for tax cuts planned rather than as an exchange commodity with foreign capitals.

The meeting with the EU representatives

The Secretary of Commerce Howard Lutnick played the role of head of the administration, but harshly attacked the commercial partners for their commercial surplus and tax policies, before asking for « an agreement ». The commercial representative of the United States, Jamieson Greer, a lawyer who had previously worked for Bob Lighthizerresponsible for trade during the first term of Trump, has increasingly established himself as legal manager, trying to create a model for the initiative of the president aimed at reorganizing global trade. The European Commissioner for Commerce Maroš Šefčovič will meet Lutnick and Greer Tuesday.

Rates against Mexico and Canada

Trump’s commercial policy was unpredictable: the president announced relevant rates on allies such as Mexico and Canada, and then withdraw them, often hours later, despite the intense pressure of companies. Since it is in office, it has applied a flat rate of 25% on all steel and aluminum importstogether with a series of new products made with the two metals. After the EU declared that it would respond in the same way to the duties on metals, Trump threatened a retaliation rate of 200 percent on French wine and other alcoholic products.