Speaking at a recent Georgia GOP conference, President Donald Trump announced his plan to gain complete independence from China through a Reciprocal Trade Act.
President Trump’s Reciprocal Trade Act has been in the planning stages since early 2019, and now, President Trump vows that if he’s elected in 2024, he will make sure that Congress passes the act.
In his speech at the Georgia GOP conference, President Trump stated that this move to gain independence from China would be achieved by implementing a new border tax and increasing tariffs between trading countries.
This will be included along with the other big changes outlined in the House Republican Study Committee’s new budget plan, including tax cuts and slashing budgets to prevent federal overspending and corruption within the system.
According to President Trump, implementing this new trade act will not be difficult. During his speech, he states. “This is very simple. They charge us, we charge them. What’s going to happen is a lot of them will come off.”
This new act is a result of the high import tariffs that countries like China impose on the U.S. Although in 2018, President Trump did increase tariffs on Chinese imports by 25 percent and China retaliated with their own increases, this was known as the U.S. and China trade war.
To prevent this from happening, this new trade act slightly differs. Whatever tariffs are charged on U.S. products, the U.S. will charge that same amount to foreign countries’ imports. Essentially, making trading fair for all parties.
According to President Trump, this move will likely force countries like China to reduce tariffs on the U.S.’s goods. “We’ll take in billions and billions and hundreds of billions of dollars,” he said.
In addition to imposing fair trade tariffs, President Trump’s new trade act would add a 12-15 percent tax rate for people looking to do business with the U.S.
In his speech, President Trump explains this new tax. “If they want to take our wealth, if they want to steal our wealth, they should pay 15%.”
This new Reciprocal Trade Act under Trump’s administration plans to give the U.S. her independence from China.