|
||
|
TWN
Info Service on WTO and Trade Issues (Jul25/11) Geneva, 10 Jul (D. Ravi Kanth) — United States President Donald Trump on 9 July announced a reciprocal tariff of 50% on all Brazilian goods entering the US market on extraneous grounds not related to trade in punishing the Luiz Inacio Lula da Silva government for pursuing ongoing corruption cases against former Brazilian President Jair Bolsonaro, in a seemingly chilling development that has never taken place in the past 80 years, said people familiar with the development. “I knew and dealt with former President Jair Bolsonaro, and respected him greatly, as did most other Leaders of Countries,” President Trump wrote in his social media website Truth Social on 9 July. “The way that Brazil has treated former President Bolsonaro, a Highly Respected Leader throughout the World during his Term, including by the United States, is an international disgrace. The Trial should not take place. It is a Witch Hunt that should end IMMEDIATELY!” Continuing his attack against the Lula da Silva government, President Trump wrote: “Due in part to Brazil’s insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans (as lately illustrated by the Brazilian Supreme Court, which has issued hundreds of SECRET and UNLAWFUL Censorship Orders to US Social Media platforms, threatening them with Millions of Dollars in Fines and Evictions from the Brazilian Social Media market), starting on August 1, 2025, we will charge Brazil a tariff of 50% on any and all Brazilian products sent into the United States, separate from all Sectoral Tariffs. Goods transhipped to evade this 50% Tariff will be subject to that higher Tariff.” President Trump claimed that “the 50% number is far less than what is needed to have the Level Playing Field we must have with your Country. And it is necessary to have this to rectify the grave injustices of the current regime”. This is the most alarming development in the global trading system, where the US is ready to impose reciprocal tariffs on extraneous grounds and destroy the rule of law permanently, said a former trade envoy, who asked not to be quoted. MORE COUNTRIES TARGETED President Trump has also accelerated the process of serving seemingly unilateral and “extortive” letters citing tariffs varying between 25% to 30% to seven countries from different regions, said people familiar with the development. The World Trade Organization’s Director-General, Ms Ngozi Okonjo-Iweala, is yet to issue any statement on the irrecoverable damage being inflicted on the global trade body by President Trump’s seemingly endless tariff letters sent to countries, said people familiar with the development. The seven countries issued with tariff letters include Sri Lanka, Iraq, Libya , Algeria, the Philippines, Brunei, and Moldova. Sri Lanka, which depends on tourism and exports of textiles, coffee, spices, and fishery products among others, will have to pay a 30% tariff on 1 August, as against the initial rate of 44% that was announced on 2 April. The Philippines will have to pay a new tariff of 20% on 1 August as against the initial rate of 27%, while oil-rich Brunei will face a new tariff of 25% on 1 August as opposed to the initial rate of 24%. The two war-torn countries of Iraq and Libya, which suffered from incalculable destruction caused by the US and continue to reel under untold human misery, are hit with new tariffs of 30%, to be paid on 1 August, as compared to the initial rates of 39% and 31%, respectively. Algeria will need to pay 30% from 1 August as compared to the initial rate of 30%, while Moldova will be required to pay 25% on 1 August as compared to the initial rate of 31%. Compared to all other countries, the Trump administration appears to be dealing with the European Union and India on a different footing. The two countries are likely to be settling for initial framework agreements, to be concluded with full-fledged bilateral free trade agreements, media reports have suggested. +
|
||
