Ultimatum included

180 days time: Trump issues global counter-tariffs

Trump has signed dozens of decrees since taking office.

(Bild: AFP/Andrew Harnik/Getty Images)

US President Donald Trump is continuing to tighten his course on trade policy and is issuing counter-tariffs as announced. The Republican signed an executive order to this effect on Thursday. However, this will not have any real consequences for the time being.

Tariffs on vehicles are to come "soon", Trump told journalists. The retaliatory tariffs are aimed at restoring equality of opportunity. It is about "fairness". Other countries could reduce or abolish their tariffs. It is not acceptable to send goods through another country in order to avoid tariffs, Trump added.

Trump had recently ordered tariffs on steel and aluminum. The European Union announced a response to this. "Unlawful tariffs at the expense of the EU will not go unanswered - they will result in decisive and proportionate countermeasures", said EU Commission President Ursula von der Leyen last Tuesday. The specific nature of the measures remains unclear for the time being.

In principle, reciprocal tariffs mean that the USA raises tariffs wherever it currently charges less than its trading partners. Trump had emphasized in the past that he wanted to correct the trade imbalance with these tariffs and accused other countries of treating the United States unfairly.

Nothing will happen for the time being
The new tariffs will not come into force immediately. Instead, the responsible authorities have 180 days to identify the affected countries and impose country-specific tariffs on this basis, as a high-ranking Trump advisor said.

The countries with the highest trade deficits will be targeted first. The affected countries are invited to negotiate with US President Trump in order to avert the US tariffs. However, tariffs could also come into force before the deadline, according to the advisor. The authorities are working at "Trump speed".

The Trump adviser emphasized that it does not matter whether the planned tariffs concern strategic competitors such as China or allies such as the European Union, Japan or Korea. 

If tariffs backfire
However, the high-ranking government representative also emphasized that Washington is also annoyed by the value-added tax that car imports from the USA are additionally subject to. This varies depending on the EU member state - in Austria it is 20 percent.

Experts assume that the USA would be hit hardest by far-reaching countervailing duties should they actually come into force - and not be averted in advance in negotiations.

US companies are likely to pass on the higher costs to consumers - which will fuel inflation. Nevertheless, Trump is always backing tariffs. He also uses the punitive measure as a means of exerting pressure to achieve political success in negotiations with other countries.