U.S. President Donald Trump has informed more than 10 countries about new customs rates set to take effect on August 1. For Serbia, tariffs of 35 percent will be introduced, with the caveat that such a tariff policy could change with a trade agreement.
In a letter to Serbian President Aleksandar Vučić, which he published on his social media network, Trump stated that these tariffs could be adjusted, either upward or downward, depending on the relationship between the U.S. and Serbia. He added that Belgrade “will never be disappointed by the United States.”
Condition for Tariff Change
“It is a great honor for me to send you this letter, as it demonstrates the strength and commitment of our trade relations and the fact that the U.S. has agreed to continue cooperation with Serbia, despite a significant trade deficit with your great country. We look forward to cooperating with you as your trade partner for many years. If you wish to open your hitherto closed trade markets to the U.S. and eliminate your tariff and non-tariff policies and trade barriers, we may consider amending this letter,” Trump wrote.
Trump asked Vučić in the letter to understand that a 35 percent tariff is far less than what is needed to eliminate the trade deficit between the two countries.
“As you know, there will be no tariffs if Serbia or companies in your country choose to build or manufacture products in the United States, and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely – in other words, in a few weeks,” Trump stated.
He explained that Serbia will be charged 35 percent tariffs on all Serbian products sent to the U.S., separate from any sectoral tariffs, and that goods transshipped to avoid higher tariffs will be subject to those higher tariffs.
Broader Tariff Implementation
Trump sent letters regarding the introduction of new tariffs to the leaders of more than 14 countries, including Japan and South Korea, which have been assigned a 25 percent tariff. The same tariff rate has been set for Malaysia, Kazakhstan, and Tunisia. South Africa and Bosnia and Herzegovina have been subject to 30 percent tariffs, Indonesia 32 percent, Bangladesh 35 percent, Cambodia and Thailand 36 percent, and Laos and Myanmar 40 percent.
Trump warned countries in his letters against introducing reciprocal measures, stating that the U.S. would respond by imposing new tariffs in such a case.
In April, Trump announced a basic tariff rate of 10 percent for most countries and additional tariffs ranging up to 50 percent. He later postponed the effective date of the new tariffs until July 9 for all but those countries assigned a 10 percent rate. The new date, August 1, provides countries with an additional three-week delay but also forces importers into an extended period of uncertainty due to the ambiguities surrounding the tariff introduction.
MORE TOPICS:
VUČIĆ ON STUDENTS: “Times come when all the social dregs, the sludge, all the worst in a society surfaces”
TEXAS ON EDGE: These are the Girls Missing from the Camp During Floods, Search Continues! (PHOTOS)
Source: RTS, Foto: Reuters