THE NEW WAR OF TRUMP: «THE MEXICAN FRONT»
While the story of the trade confrontation between Washington and China seemed to hang in the air, the US is not sitting idly by and working in other directions. Today it became known that the head of the White house Donald Trump introduces duties on all goods from Mexico.»On June 10, the United States will introduce a 5 percent tariff for all goods imported into our country from Mexico. As long as illegal migrants keep coming. The tariff will gradually increase until the problem is resolved,» Trump said.
It is primarily about agricultural products, cars, aerospace parts, and IT services.
The fee of 5% means a loss of sales of $ 10-20 billion, which could theoretically be enough even for the construction of the wall from Mexico.
[stextbox id=’info’]If Mexico does not solve the problem of the influx of illegal migrants to the States, by October 1, duties can reach 25%.[/stextbox]
In Mexico, such measures shocked. The head of state Andres Manuel lópez Obrador said that he had already sent a delegation to Washington, led by the Minister of Foreign Affairs for negotiations, and wrote a letter to Trump in the hope to reason with his colleague.
Dissatisfied with the actions of us President and the American establishment. Chairman of the Senate Finance Committee, Republican Chuck Grassley called the actions of the head of state «abuse of presidential tariff powers.» because trade relations and border security are separate issues.
Despite everything, the trump administration continues to act on the principle of «America above all else.» Speaking of China, Trump said: the situation with Huawei can be resolved within the framework of a new trade agreement with Beijing. Obviously, again, beneficial only to Washington. China is not going to give up and dealt a heavy blow to the States in the trade war. As reported by Bloomberg, citing sources, China suspends the purchase of soybeans from America. Losses for us budget are estimated at tens of billions of dollars.
China is the world’s major importer of soybeans (60% of U.S. exports). According to the Agency, Chinese state buyers do not receive new orders for goods from the US and do not expect that this will happen in the near future. At the same time, the Chinese authorities are not going to cancel already made orders for American soybeans.
In December 2018, China purchased from the American side about 13 million tons of raw materials, in February, us Ministry of agriculture reported that soon the Chinese side will acquire another 10 million tons of soybeans. However, the placement of new orders was suspended. According to the American side, China has received about 7 million tons of soybeans on previously made orders.
Meanwhile, under the distribution of Washington got and India: the States deprive it of trade preferences Generalized System of Preferences (GSP, the program allows developing countries to export goods to the United States without paying duties). As a senior us state Department official said, this is a «resolved issue.»
The publication of The Economic Times draws attention to the fact that the corresponding statement trump sounded in March, the same day when Narendra Modi took office as Prime Minister of India for the second time after winning the parliamentary elections.
Under American law, a Parliament was to be informed of the decision of the White House for 60 days before it will take effect.
«There is every reason to believe that the plans of the administration will be implemented,» — said the representative of the Foreign Ministry.