In a strong statement on Sunday, US President Donald Trump unveiled an eight-point list accusing foreign countries of “non-tariff cheating,” warning it could affect diplomatic and trade relations with the US. This comes shortly after he announced a 90-day halt on his wide-ranging tariff policy, excluding China.
Among the key issues flagged in the list is currency manipulation, a charge Trump has often levelled at certain countries for intentionally devaluing their currencies to boost exports while making American goods more expensive overseas. He also raised concerns over Value-Added Taxes (VATs), which many countries impose on imports but refund on exports, creating an uneven playing field, according to Trump.
The list further highlights practices like dumping goods below cost, export subsidies, protective agricultural standards, counterfeiting, piracy, intellectual property theft, and transshipping goods through third countries to bypass tariffs.
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Trump 8-point non-traffic cheating:
- Manipulating currency values for trade advantage
- Using VATs as hidden tariffs and export incentives
- Selling goods below production cost (dumping)
- Providing government support to boost exports
- Restrictive agricultural rules (like EU’s ban on genetically modified corn)
- Strict technical regulations (e.g., Japan’s unusual product testing)
- Intellectual property violations, including counterfeiting and piracy (over $1 trillion annually)
- Re-routing exports through other countries to avoid tariffs
Trump revisited his previous criticism of Japan’s “bowling ball test,” which he claims is a technical standard that unjustly hinders US auto exports. He explained, “They drop a bowling ball from 20 feet onto the hood of a car. If it dents, the car doesn’t qualify. It’s ridiculous,” a statement he first made in 2018 and reiterated in this warning.
US-China tariff war
Earlier on April 9, Trump made a surprising move by announcing a 90-day suspension of his wide-ranging tariff regime on all nations, except China. The decision came after what Trump described as successful negotiations with over 75 countries that chose not to retaliate against his earlier trade measures. During this pause, a significantly reduced reciprocal tariff rate of 10 per cent would be applied.
According to reports, the rising concerns within the US Treasury Department over instability in the bond market played a critical role in prompting the pause. The administration has reportedly been grappling with growing economic turbulence, particularly stemming from its ongoing trade standoff with China.
While the tariff pause applied to most nations, Trump took a sharply different approach with China. He immediately escalated tariffs on Chinese goods to 125 percent, up from the previous 104 per cent. The rate was later hiked to an aggressive 145 per cent after Beijing hit back in response to Trump’s sweeping “Liberation Day” tariffs, intensifying an already volatile trade battle between the two economic giants.