President Donald Trump on Wednesday sent fee letters to seven small American business partners and promised to announce the import tax on other countries later. None of the countries for whom fee letters have been sent is America’s major industrial rival.
These countries are Philippine, Brunei, Moldova, Algeria, Libya, Iraq and Sri Lanka. This is an indication that a President who has expressed his attachment to the word ‘fee’ (tariff) openly is still fascinated by the idea that taxing business will bring prosperity in America.
Most of the economic analysis states that fee will increase inflation pressure and decrease in economic growth, but Trump has used taxes to demonstrate the US diplomatic and financial power on both rivals and colleagues.
Their administration is promising that taxing on imports will reduce trade imbalance, some of the laws signed by them on Friday will compensate for some of the tax deduction costs and will return jobs in factories in the US.