Trump threatens to lay up additional 40% fees on any recharge of the product
US President Donald Trump has threatened to impose additional customs duties with 40% on any product considering Washington, underwent a ‘recharge’ process by a third country, in a move aimed at preventing goods, especially Chinese, to bypass US fees. This penalty came to the White House announcement on Thursday night, revealing the structure of international customs duties, ranging between 10% and 41%. However, many countries do not yet have the details of the ‘rules of origin’ that allow them to understand what the United States consider a recharge. The ambiguity of the application mechanism, Leah Fahi, the chief economist of capital economy, wrote in a research note on Friday: “It is still unclear how this decision will be applied in practice.” A senior US official in Washington said on Thursday that the decision on these rules would be made in the coming weeks, although the United States had previously said it would record this file before August. These details are of particular importance to countries in Southeast Asia, such as Vietnam, which has become one of the most important suppliers of goods to the United States. Many companies and factories have transferred their operations from China after the first trade war that Trump launched against Beijing, but they still rely a lot on Chinese components in production operations. ‘Restore’. Details of Thai Deputy Minister of Trade, Cantalwit Tantast, said that 19% of customs duties give its country a competitive advantage because it is in line with the levels imposed by Malaysia, Indonesia, Cambodia and the Philippines, and less than the percentage of 20%. But he pointed out that the issue of recharge is still without a solution. “We have to wait for more explanations from the US side on the path of negotiation and the rules of origin,” Cottwyit added on Friday in a statement released on Friday. In a separate statement, Finance Minister Pachay Chunjera said that the local content should exceed 40% to be classified as a ‘Thai’, but that his country has not yet reached an agreement with the United States on these details. China is the unexplained goal. China is the unannounced goal of this decision, as Trump holds it responsible for the exploitation of free trade rules to undermine the manufacturing and job sector in the United States by flooding the market with cheaper imports. Trump is scheduled to make his final decision on the continuation of the commercial ceasefire with China within two weeks. Stephen Olson, a former US commercial negotiator who is currently a researcher at the Institute “Youssef Ishaq Studies” (ISEAS) in Singapore, believes that the issue of rehearsing goods may be more difficult for these negotiations. “China will fully realize that recharge statements are against its interests,” Olson said, “it will certainly reflect negatively on its continued trade negotiations with the United States.” A limited impact on the export of China, but some analysts expect the impact of punishment to be limited to China or the ability of its manufacturers to deliver goods to the US consumer, either directly or indirectly. Fahi wrote that “the implementation of this policy is likely to face major challenges,” and adds that “the transformation of trading pathways will continue to limit the impact of US fees on the total performance of Chinese exports, even if the direct manipulation of delivery destinations is falling.”