By Josh Bork
WASHINGTON (AP) – President Donald Trump has taken additional steps to disrupt the global trading system, and plans to sign the order on Wednesday, in which U.S. tariffs on imports coincide with the rates charged by other countries I have a plan to request that I do.
“It’s time to be mutual,” Trump told reporters earlier this week. “You’ll hear a lot of those words. Mutual. If they charge us, we will charge them.”
The president had suggested that the order would come on Tuesday or Wednesday. However, when tariffs passed without official announcement on Tuesday, Trump was asked if he would sign the order on Wednesday, and Trump replied, “We see what happens.”
He owns the path of the US economy entirely as Trump unleashed a series of tariffs after gaining power in less than a month. Even if Trump’s own approval could result in some economic distress in the form of inflation and economic disruption, his economic ideas could ultimately have significant results. is a bet. For all Trump’s stories, the impact will likely depend on the details of the tariffs and how other countries respond.
As the Census Bureau reported last year that it had gross imports of gross imports, the mutual customs order could be a substantial tax hike, primarily handled by US consumers and businesses. Tariffs could trigger retaliation measures by potentially growing trading partners around the world, resetting the US to where it stands like its allies and rivals.
By signing the order, Trump will fulfill his longtime pledge to raise taxes on most imports. This was a clear break with his recent White House predecessor, viewing tariffs as a strategic target tool or a worthy barrier to decline. Trump is breaking that precedent by saying he wants to return the United States to the 1890s, when taxes on imports were the government’s dominant revenue source.
But if employment benefits are not materialized and inflation remains high, it is a simple attack for Democrats and candidates who helped Trump with the Ultra Awels at the expense of the middle class.
“No matter how you slice it, the costs for consumers will rise,” New York Senate Democratic leader Chuck Schumer said earlier this month. “I’ll work with my colleagues to cancel this mess, keep costs down and keep these billionaires out of the way.”
Trump has placed a 10% tariff on China on its contribution to the production of the illegal drug fentanyl, and China is taking retaliation measures. He said he was ready as needed on March 1st (after a 30-day suspension).
On Monday, he closed the 2018 tariff exemption on steel and aluminum in addition to increasing the tariff charges on aluminum. He also spoke about additional taxes on imported cars, computer chips and pharmaceutical drugs.
Many of America’s dominant trading partners are preparing for an economic rupture in response to Trump’s possible actions.
European Union chief Ursula von der Reyen said Tuesday in response to steel and aluminum tariffs. This means that US motorcycles, jeans, bourbon and peanut butter could face new taxes overseas. Mexico and Canada (the two largest trading partners in the US) are also preparing countermeasures.
Multiple Trump aides have personally said that the long-standing goal with Trump’s tariffs is reciprocity. But Trump also portrays tariffs as a diplomatic tool to force Canada and Mexico to spend more resources to stop illegal immigration and drug trafficking into the United States. He also repeatedly suggested that tariffs are a source of income that could offset the tax cuts on his planned income.
But even before Trump officially signed the order, Goldman Sachs analysts on Tuesday concluded that it was unlikely that it was the last word on tariffs.
“Of course, even if President Trump sees it as an alternative to more drastic measures at this point, there will likely be more tariff announcements when he enters only the fourth week of his four-year presidency.” Written by a bank analyst.
Morgan Stanley strategist Michael Zezas wrote in a memo on Sunday that the “tariff trajectory” will shape what will happen in growth, inflation, interest rates and Federal Reserve policies this year.
“This is a major shift from an era of globalization, when companies reduced costs by pursuing low-cost labor and materials offshore,” Zesas said. “This transition will likely take years and for some, there are great opportunities for others.”
