Trump would push for a “reciprocal tax” against trade partners

Vastavam web: U.S. President Donald Trump said on Monday he would push for a “reciprocal tax” against countries, including U.S. allies, that levy tariffs on American products, but officials did not provide details on how such a tax would be structured or what goods it would apply to.During his populist 2016 presidential campaign, Republican Trump railed at countries that had trade surpluses “taking advantage of the United States” and he revisited the theme on Monday.

The United States loses “vast amounts of money with China and Japan and South Korea and so many other countries It’s a little tough for them because they’ve gotten away with murder for 25 years. But we’re going to be changing policy,” he said.He did not specify how such a tax would be structured, or whether he meant that U.S. tariff rates should be raised to equal to those charged by other major trading partners. Administration officials were not immediately able to elaborate on the president’s comments.

Trump cited motorcycle maker Harley-Davidson as an example of the problem of unfair trade. Harley is building a factory in Thailand, partly because its U.S.-built bikes face a 60 percent tariff there.It was also unclear whether Trump was reviving the idea of a border adjustment tax, an idea rejected by congressional Republicans in last year’s tax reform effort.

Retailers and some import-dependent industries strongly opposed the plan for a 20 percent tax on imports aimed at offsetting the value-added tax refunds that some countries grant to their exporters. The National Retail Federation at the time called it a “bad tax” that would “drive up the prices of countless products Americans use every day.”