The US is planning to impose higher rates on various large trading partners from Friday, unless new agreements are reached with President Donald Trump that arouses concern about rising consumer prices and economic tension. Financial experts warn that the proposed rates, which must be paid by importers of foreign goods, will probably increase operating costs and reduce household expenses – are consumption, an important engine of the US economy.
Important products
Coffee The National Coffee Association says that the US imports more than 99 percent of coffee, with two -thirds of the American adults who drink daily. Top suppliers include Brazil, Colombia and Vietnam.
- Brazil, good for more than 30 percent of American import, will be confronted of a rate of 50 percent from 1. August. Trump announced the rate in a letter to the leadership of Brazil, referring to what he called a judicial “witch hunt” against his ally, ex-president Jair Bolsonaro.
- Despite a recent agreement with Trump, Vietnam will impose a rate of 20 percent.
Clothing According to the American Apparel & Footwear Association, China, Vietnam and Bangladesh have supplied more than half of the American clothing input from January to May.
- Chinese goods, almost a third of the total, now have a new 30 percent duty on the top of existing rates. If the current rate view expires on 12 August, the tasks can rise further.
- Vietnam and Bangladesh are confronted with 20 percent and 35 percent rates respectively under Trump’s latest proposals.
Jasmine rice The US is the largest rice importer in the western hemisphere, with more than 1.3 million tonnes per year – more than 60 percent of the aromatic varieties such as Jasmine and Basmati.
- Thailand will have a 36 percent duty from Friday, India 26 percent and Pakistan 29 percent.
Cocoa USDA data shows the import of cocoa beans – especially from Ivory Coast and Ecuador – on average more than $ 1.1 billion (2017-2021) per year.
- Ivory Coast is confronted with a rate of 21 percent.
- The import of cocoa butter worth $ 576 million, mainly from Indonesia and Malaysia, will now be confronted with the rights of 19 percent and 25 percent respectively.
Electronics and raw materials Trump has also proposed a radical rate of 50 percent for copper import from 1 August. According to BCG, this can add $ 8.6 billion to the costs of imported buyer, with further increases possible if they are extended to related products.
- The construction sector – which uses 42 percent of the domestic buyer – together with the production of electronics, is expected to be confronted most of the rising input costs.
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