One of the biggest highlight today is the announcement of President Donald Trump about pushing the reciprocal tax on its trade partners. The country is looking to integrate the “reciprocal tax” both for its U.S. allied countries and countries outside the coalition as well.
Furthermore, President Trump expressed his sentiments on their previous meeting about infrastructures, noting that other countries are taking advantage of the United States and now is being forced to implicate the rumored “reciprocal tax” in the market. The announcement was abrupt and the market is still dangling after the rapid announcement.
Reciprocal Tax Details
Going further down the announcement, the “reciprocal tax” that will be highly pushed is a tax reform that will request a tariff on every country that hit the United States with levies. Furthermore, the “reciprocal tax” is going to go under scrutiny before being passed as other tax reform do; the Congress would have the power to approve it and even having the World Trade Organization scoop in if the brevity of the new tax reform is hefty.
Moreover, the meeting didn’t provide that much clarity and information about the technical details of the up and coming tax. Most countries are still looking to be provided with the additional information about which good would the tax apply to and what the tax structure is.
According to Trump, “'We cannot continue to let people come into our country and rob us blind and charge us tremendous tariffs and taxes and we charge them nothing,” Trump has been keen on this tax reform ever since his campaign, he even mentioned late 2016 that a couple of countries are taking advantage of the United States' which he visited in the previous meeting.
During the meeting, the President mentioned that “We are going to charge countries outside of our country -- countries that take advantage of the United States,' and that 'Some of them are so-called 'allies,' but they're not allies on trade. They'll send in their product, and we won't charge them anything. And we send them our product -- same product as they're sending us -- and they'll charge us 50 and 75 percent tax, and that's very unfair,'”
Trump also added that ‘’they’re treated very unfairly in various countries. You know the countries I'm talking about,' Trump said. 'So we're going to be doing very much a reciprocal tax. And you'll be hearing about that during the week and during the coming months.”
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