Donald Trump Unveils Key Practices of Non-Tariff Cheating in Global Trade
In a recent statement, Donald Trump outlined several unfair trade practices he categorizes as "non-tariff cheating."
These practices, employed by various countries to sidestep tariffs and gain an unfair advantage in international trade, are damaging to global economic fairness.
Here’s a breakdown of these practices:
- Currency Manipulation
Countries deliberately adjust their currency value to make their exports cheaper and imports more expensive, giving them an unfair trade edge.
- VATs Acting as Hidden Tariffs
Value-added taxes (VATs) that effectively serve as hidden tariffs or export subsidies, further distorting market competition.
- Dumping Below Cost
Selling goods at prices lower than their production cost, designed to flood foreign markets and push local businesses out of competition.
- Government Export Subsidies
Direct financial support from governments to local industries to lower the cost of exports, making it harder for foreign competitors to compete on an equal footing.
- Protective Agricultural Standards
Stringent agricultural regulations (e.g., bans on genetically modified crops) that protect local markets while limiting foreign products, even if they meet international standards.
- Technical Barriers to Trade
Excessive technical standards or regulations, such as Japan’s bowling ball tests, designed to limit foreign products’ access to domestic markets by making it unnecessarily difficult for them to meet the criteria.
- Counterfeiting, Piracy, and Intellectual Property Theft
Illegal activities like counterfeiting and intellectual property theft that cost the global economy over $1 trillion annually, undermining innovation and creating unfair market conditions.
- Transshipping to Evade Tariffs
The practice of rerouting goods through third-party countries to avoid tariffs, further eroding the integrity of trade agreements and tariffs meant to protect industries.
These non-tariff barriers contribute to trade imbalances and create an environment where global trade is not conducted on a level playing field. Addressing these issues is essential to ensuring fair competition and protecting intellectual property rights in international markets.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
