The US government may have given some electronic products exempted from tariffs i.e. import duty, but this relief is not going to last long. US Commerce Secretary Howard Lonik has clearly stated that this discount is just temporary and soon a special “semiconductor tariff” will be imposed on these products.

What did Commerce Secretary say?

Talking on the ABC channel’s show ‘This Week’ on Sunday, America’s Commerce Secretary Lonik said, “Many electronic items like smartphones, computers, solar cells, flat-panel TVs have been excluded from the tariffs right now, but all these products will be under semector tax in the next 1-2 months.” He said that America now wants to build these essential things like chips, flat panels and semiconductors in its country itself. Lonik insisted that we cannot be completely dependent on South East Asia.

It is a matter of national security

Lonik also made it clear that this is not an issue that can be resolved by negotiating with other countries. He said that these products now come under ‘National Security’. Meaning, it should now be made in America. They cannot be exempted from tariffs forever.

What is the thinking of Trump administration?

President Donald Trump and his team want factories to be made again in America, especially the goods related to medicines and technology. For this, companies are being forced to bring back the manufacturing by imposing tax on imports.

Which products are now exempted?

On Friday night, the US Customs Agency issued a notice stating that things like smartphones, computers, solar cells, TV displays, and storage devices are currently exempted from tariffs. But now it has become clear that this discount is temporary and tax may be applied again in the coming months.

Message to india

The tariff policy in the US has now directly connected to the National Security. For countries like India, it is an indication that in global trade, more ‘safe trade’ is coming more than ‘free trade’.

Also read: India US Trade Deal: Not exactly for India ‘Zero-for-Zero’ tariff model … Sources told how to talk to Donald Trump

Us-eu trade war: Europe has also retaliated on Donald Trump’s tariff bomb. On Wednesday, the European Union (EU) approved the US to impose tariffs on 20 billion euros (about Rs 1.8 lakh crore) products. In the target of the European Union, soybeans, motorcycles, beauty products and more.

What is the whole matter?

Donald Trump recently hit a heavy tariff on steel and aluminum coming from Europe. In response, EU has also taken up the front and has clearly said that he will not bear anymore!

These taxes will start from April 15

EU says that this attitude of America is not only unfair, but it is causing damage to the economies on both sides. Also, global economy is also being affected.

Is EU ready for conversation?

EU has said that if the US is ready for “just and balanced deal”, then these tariffs can also be stopped. But at the moment Europe is in its own attitude.

What is involved in EU’s counter-war?

This time EU has retaliated on two levels-

First step- Trump was set in his first term but currently suspended taxes are being activated again.

Second step- A new list has been prepared, which will be taxed from next month. Duty will start from December on some items.

Which products will be hit on tariff

According to Mint’s report, this time the special thing is that most of the products that EU has chosen for heavy tariffs is from states where Trump’s Republican party dominates. That is, political targets have also been served. These products are- motorcycle, chicken, maize, dry fruits, wood, paintings, textile and electronic goods. Tariff will be hit on all these.

What has Trump done?

Trump announced 25 percent duty on cars coming from Europe and 20 percent tax on other goods. EU has said that these will also be reversed soon. This tariff confrontation between America and Europe is now taking the form of a direct trade war.

Also read: US China Trade War: China has another attack on America, 84% tariff taken on 18 American companies