On Sunday, US President Donald Trump issued an eight-point list aimed at what he called “non-tariff cheating” by foreign nations, warning that it might have an impact on diplomatic and trade relations with the US. The move came only days after Trump placed a 90-day moratorium on his broad tariff campaign for all countries except China.
One of the primary issues highlighted in the list is currency manipulation, which Trump has frequently accused some countries of purposely weakening their currencies in order to boost exports while making American goods more expensive abroad. He also expressed concern about Value-Added Taxes (VATs), which many nations levy on imports but refund on exports, creating an unfair playing field, according to Trump.
The list also includes tactics such as dumping goods below cost, export subsidies, protectionist agricultural standards, counterfeiting, piracy, intellectual property theft, and transshipment through third nations to avoid tariffs.
Trump eight points of non-traffic cheating:
- Currency manipulation.
- VATs serve as tariffs and export subsidies.
- Dumping Below Price
- Export and Other Government Subsidies
- Protective Agricultural Standards (for example, no genetically altered corn in the European Union).
- Protective Technical Standards (The Japanese Bowling Ball Test).
- Counterfeiting, piracy, and intellectual property theft (almost $1 trillion per year)
- Transshipping to avoid tariffs.
Trump repeated his prior assertion about Japan’s so-called “bowling ball test” — a supposed technical criteria that he claims unfairly restricts US vehicle exports. “They drop a bowling ball from 20 feet onto the hood of a car.” If the car is dented, it does not qualify. “It’s terrible,” Trump said in 2018 and reiterated in his warning.
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The United States and China’s tariff dispute
Earlier on April 9, Trump surprised everyone by declaring a 90-day moratorium of his broad tariff system on all nations except China. The decision followed what Trump described as successful negotiations with over 75 countries that elected not to react against his previous trade restrictions. During the pause, a reciprocal tariff rate of 10% would be applied.
According to sources, mounting fears within the US Treasury Department about bond market volatility played a significant role in prompting the suspension. According to reports, the government is dealing with increasing economic volatility, particularly as a result of its protracted trade spat with China.
While the tariff freeze extended to the majority of nations, Trump adopted a very different approach with China. He promptly raised taxes on Chinese imports to 125 percent from the previous 104 percent. The rate was eventually raised to an aggressive 145% after Beijing retaliated in response to Trump’s broad “Liberation Day” tariffs, exacerbating an already turbulent trade war between the two economic power houses.
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