Donald Trump has announced 20% of the EU products that entered the United States, claiming that Donald Trump has announced a 27-foreign batch “stealing the United States” by collecting 39% of US products entering the single market.
“They charge us 39%. We will charge 20%-we are half of them,” Trump said Wednesday declared “Liberation Day”.
But does the EU really pay higher fees for US products? How was this rate calculated?
The EU does not impose 39% per US products
The available data shows that the real EU is not approached by a 39%score.
The European Commission says that this is applied An average fee Only 1% of US products entering the EU market is “taking into account the useful trading of goods”. The European Commission says the US administration has grossed customs duties over 7 billion on EU products compared to the United States 3 billion EU.
The value of the WTO (WTO) (WTO) estimates at 4.8%of the average rate of customs rights in US products that enter the EU.
In both cases, this value is far from 39% mentioned by the Trump administration.
“It is not really right to say that the European Union imposes a 39% fee to the US. It is close to 3%,” said Andrew Kenningham, chief economist from the capital economy, to Euronevas, Commission and WTO values.
“Since there is one, it is not reliable or justified to achieve these numbers,” a high EU employee told reporters Thursday morning.
However, the US administration indicates unreasonable “asymmetry” in some customs rates. For example, the EU uses 10% per US car imports, while the United States applies only 2.5%.
However, Brussels claims that it does not take into account the fact that the US refers to 25% of the Big-up vans made by the EU, which represents the US consumer’s favorites and “one-third of all automobile sales.”
How does Trump administration come to these numbers?
In fact, there is a simple formula in Trump’s giant card table.
The first column – the customs rates imposed by US allies – seem to have been calculated from Washington’s business deficit with this partner, and then divided by exporting it to the United States.
The second column – the mutual rate called the SO- of the Trump administration – half of this rate.
As far as the EU is concerned about 2024 data provided by the European Authority, it will refer to the business deficit of 198.2 billion euros, which is divided into 531.6 billion euros by the total exports of the EU, resulting in 37.2% of the 39% of the Tumbal.
AdvertisementNew York Times Did the same exerciseUsing the numbers defined by the US business representative, the result found that the result was 39%.
To Andrew Kenningham Euronevs, this “strange” formula is based on the lack of business with its allies, which is a “completely new release”, which took everyone with a surprise.
“In fact, people think this is very strange,” Kenningham said.
“The formula (…) is the only logic on the head of President Trump,” the EuroNius, the Economic Professor of Economic PO, the Economic Professor of Economic PO.
Advertisement“Therefore, leading this logic is President Trump’s excitement over bilateral deficit.”
“This is not the status of fees or anything else, we are informed that we can be taken into account in mutual fees,” Kenningham said.
“The fees are based on the dimension of business imbalance, and that most people understand them, they are not really mutual fees – we will do what you are doing for us – this is initially explained by the word ‘mutual’,” he added.
How does the Trump administration justify this logic?
Number Notice Wednesday night’s announcement that Trump’s “mutual fees” was calculated using a complex formula aimed at balanced “bilateral trade deficit” between the US and their business partners.
AdvertisementHe further says that the calculation takes into account the “combination of national and non -national factors that prevent trade balance.”
In other words, the Trump administration has increased the value of 39% by taking into account a series of measures that the Trump administration considers trade – not just fees.
A White House consultant StressedOn Thursday, the calculation was complex and it took into account “non -sexual obstacles.”
Intended property rules, environment and digital terms, licensing requirements, and in some cases, include “corruption”.
AdvertisementRepresentative of American trade Name A series of continuous EU -specific law that you consider to be free trade with the United States, including packaging waste, deforestation, chemicals and your comprehensive digital rules books, digital markets and services (DMA/DSA).
Another parameter would have ordered Trump to consider his team, saying that it was an additional value tax (WAT) in raising mutual fees, saying that this was a kind of fee. The European Union has fiercely contested the report, “Wat is not a business activity, let it be a fee.”
But as far as Trump is concerned, foreign governments are complicated for their consumers about the products made in the United States.
In the EU, watt is usually high, which creates 20%, while the US is equal sales tax. California has the highest state -supreme sales rate with 7.25%.
AdvertisementThe European Union emphasizes that its wat system is “fair and not discriminated against, and that is equal to the products produced at home.”
