More than 50 countries are talking to the US about trade. This is after President Donald Trump announced a new tax on imported goods. The US wants to make trade fair.
Kevin Hassett, a top economist, said countries are reaching out because they don’t want to pay high taxes. Trump’s plan includes a 10% tax on all imported goods. Some countries will pay even more because the US has a big trade deficit with them.
Not all countries are angry. Indonesia and Taiwan say they won’t retaliate with their own taxes. Taiwan’s president, Tsai Ing-wen, wants to reduce trade barriers and increase investment in the US instead.
Other countries are not so calm. China and Canada have already announced their own taxes in response. The UK is thinking about it too. Israel’s prime minister, Benjamin Netanyahu, went to Washington to talk trade with Trump.
The US says it doesn’t expect a recession because of these new taxes. Some experts are worried, though. They think prices could go up in the US, and other countries might retaliate.
What’s happening with trade?
The US has a big trade deficit with many countries. This means it imports more than it exports. Trump wants to change this. He thinks the new taxes will help.
Some countries are:
- China: announced its own taxes
- Canada: announced its own taxes
- UK: thinking about its own taxes
- Indonesia and Taiwan: won’t retaliate
- Israel: talking trade with the US
The world is watching to see what happens next. Will the US and other countries find a way to make trade fair, or will there be more taxes and retaliation?