Usa duties, the “road map” of Trump: 10% for all from April, 5th, then change from April, 9th

Universal duties for all the goods produced outside the Usa at 10% starting from April, 5th, and, then, the different rates for country or geographical area (as explained here), 20% in the case of the European Union, including also all wine and agri-food sector from April, 9th (while, according to Usa sources, goods on transit or already loaded on the last means which has to arrive in the States by April, 4th): it is the “road map” tracked by Us president, Donald Trump, in the signed and already operative executive order with No. 1 of the Usa, who, in his speech of yesterday night at Italian 10 p.m (which on WineNews, we reported here with the first reactions) in the sign of “America First” ordered to the world economies, “guilty”, according to Trump, to have “sacked” in the years American richness, and defining, among other things” Europe as “pathetic”. Therefore, an agenda, that of Trump, of which the beginning is known, but not the end seen that an end of duration of duties is not expressively foreseen, which Us President defined “mutual” and “universal”, but leaving, at least formally, a possibility to change route, seen that, explains a note of the White House signed by the same Trump, in which the reasons which brought to this decision are explained, “additional ad valorem duties will apply up to the moment in which I will determine that the underlying conditions described above are satisfied, solved, or mitigated”.
In the meantime, a first comment also from American wine trade arrives. “We know that this is a difficult moment. But, our sector is strong, our community is resilient, and we will cope this together”, explains Ben Aneff, president of Us Wine Trade Alliance, who explains: “the universal tariff of 10% should enter into force at 12.01 a.m of April, 5th. Additional tariffs on specific countries would enter into force at 12.01 a.m of April, 9th. The Executive Order – explains Aneff – includes an exemption for goods in water. The goods loaded on a ship in the loading port, and in transit on the modality of final transportation before the respective tariff dates ( April, 5th or April, 9th) won’t be subjected to new tariffs also if they arrive or pay customs taxes after these dates. This will avoid, we hope, the most disruptive costs at surprise on goods already on movement. Goods loaded on the last transit means by April, 4th are not subjected to new tariffs. The goods loaded on the final transit means from April, 5th to 8th are subjected to a tariff of 10%. Starting from April, 9th, goods will be subjected to tariff sum total basing on the country”, explains Uswta. Which also underlines the duties that will be imposed to the countries which are most interested in wine exports to the Usa: Chile, Australia, the Uk, Argentina, New Zealand at 10%, Israel at 17%. South Africa at 30%, Switzerland at 31%, and China at 34%.
In any case, it is difficult, up to today, to evaluate the real effects of a measure within a global reach, which frightens markets, as the marks of deep red of all the main world stock exchanges show. Many still hope in the intervention of diplomacies to change the situation, but it won’t be easy. From the European front, in the first morning, from Samarcanda, the reaction of the president of the European Commission, Ursula von der Leyen, arrived: “the announcement of President Trump of universal tariffs all over the world, including Eu, is a hard hit for world economy. I deeply regret of this choice. We try to be clear about immense consequences. Global economy will be impacted enormously. Uncertainty will increase and trigger further protectionism. Consequences will be catastrophic for million of people all over the world. Also for the most vulnerable countries, which are now subjected to some of the highest tariffs in the Usa. The opposite of what we want to get. Tariffs will damage also consumers from all over the world. It will be heard immediately. Millions of citizens will have to cope with higher food bills. Drugs will cost more as well as transportation. Inflation will increase. And, this is damaging more vulnerable citizens particularly. All the companies, big and small, will suffer since the first day. From major uncertainty to the interruption of supply chains up to onerous bureaucracy. The cost of making affairs with the Usa will increase drastically. And, furthermore, it seems that there is no order in the disorder. There isn’t a clear path, and the chaos that is being created when all trade partners of the Usa will be hit”, said von der Leyen. Who added: “We are always ready to negotiate with the Usa to remove the barriers which still interpose to transatlantic trade. In the same time, we are ready to react. We are already preparing a packet of countermeasures in reply to duties on steel. And, now, we are preparing to additional countermeasures to protect our interests and businesses if negotiations fail. Moreover, we will attentively observe indirect effects which these duties could have because we can’t absorb the excess of global capacity, or we won’t accept dumping on our market. As European people, we will always promote and defend our interests and values. And, we will fight always for Europe. But, there is an alternative path. It is not too late to cope with the worries through negotiations. For this reason, our Commissioner for Trade, Maros Šefčovič, is constantly committed with his Us counterparts. We will work to reduce barriers, not to raise them. We pass from the confrontation to negotiation. In the end, I would like also to address directly to my European fellow citizens. I know that many of you feel disappointed by our oldest allied. Yes, we have to prepare to the impact that it will have unavoidably. Europe has all what it needs to overcome this storm. Our unity is our strength. Europe has the greatest unique market in the world- 450 million of consumers – which is our safe port in agitated times. And, Europe is next to those people who are directly hit. We have already announced some measures supporting iron and steel, and car sectors. Last week, we limited the quantity of steel that can be imported in Europe without duties. This will give more breath to these strategic sectors. Now, we will call also strategic dialogues with iron and steel, car, and pharmaceutic sectors. And, others will follow. Europe is united for our businesses, workers, and for all European people. And, we will continue to build bridges to all of them, who, like us, have fair trade which is based on rules as basis for a shared prosperity close to their hearth”.
“The introduction from the Us of duties towards the European Union is a measure which I consider wrong, and is not convenient for any parts. We will do all the possible to work on an agreement with the Usa with the aim to prevent a trade war which would unavoidably weaken the Western in favor of other global actors. In any case, as always, we will act in the interest of Italy, and its economy also confronting with other European partners”, added, yesterday evening, the President of Council Giorgia Meloni (who, today, Palazzo Chigi makes know, cancelled all the commitment to concentrate the work of the Government exactly on theme duties, together with the Ministry of Businesses and Made in Italy Adolfo Urso, of Economy Giancarlo Giorgetti, of Agriculture Francesco Lollobrigida, and to European Affairs Tommaso Foti, in addition to two vice prime ministers Matteo Salvini (Infrastructures and Transportation) and Antonio Tajani, Ministry of Foreign Affairs, connected from Brussels, where he is committed also in a bilateral meeting with Eu Commissioner Šefčovič, ed).