Donald Trump hesitates in his commercial policy. Only one day after the United States President has spoken on Wednesday with the Prime Minister of Canada, Justin Trudeau. The conversation occurs after Trump’s Secretary of Commerce, Howard Lutnick, advances that the United States is willing to relieve protectionist measures that apply to its neighbors. It is not clear if Trump will also talk to the president of Mexico, Claudia Sheinbaum. Among the measures under study is a possible moratorium of a month to tariffs of the automotive sector.
“What is thinking [Trump] It is in which market sectors can, perhaps, perhaps, consider the possibility of granting them an exemption, ”said Lutnick this Wednesday in an interview at Bloomberg Television. While some categories will remain with the 25%tariff increase, others will be out of tariffs. “It could be the automotive sector, but it could also be another,” he said, to get an exemption.
The announcement will “this afternoon,” he said. On the table is the possibility of reducing tariffs for specific products that comply with the regulations of the Trump himself negotiated in his first mandate. Lutnick added that his “understanding” is that the three large car manufacturers in the United States – Ford, General Motors and the Chrysler brand, owned by Stellantis – comply with the standards of the TMEC. Trump government positions have maintained contacts with managers of those companies.
“There will be tariffs, let’s be clear, but in what he is thinking about, it is what market sectors it may consider relief until we arrive, of course, April 2,” said the Secretary of Commerce, in reference to the date Trump has set to approve tariffs that all countries call reciprocal. “I think it will be at some intermediate point.”
The eve, Lutnick had already indicated the possibility of relief in tariffs. “Both Mexicans and Canadians have been talking to me on the phone all day trying to prove that they will do better, and the president is listening, because they already know that it is very, very fair and very reasonable,” “so I think he will reach an agreement with them; It will not be a pause, none of that, but I think he will think: ‘Do more and we will find ourselves in the middle in some way’ and we will probably announce it tomorrow, ”he added, referring to this Wednesday.
Inflation expectations fired
The new caused by the entry into force of tariffs and the deterioration of economic expectations may have contributed to Trump to rethink its measures. The bags recovered after Lutnick suggested the possibility of a rectification, but part of the damage caused by improvisation, uncertainty and swings of Trump’s commercial policy is made. Inflation expectations have shot, consumers’ confidence has fallen strongly, companies are on alert and several indicators suggest a weakening of economic growth.
Trump continues to defend the benefits of his protectionist policy, although he admitted that he can have contraindications. “The tariffs are aimed at making the United States again be rich and great. And it is happening, and it will happen quite fast. There will be some disturbance, but we agree with that. It won’t be much, ”he said.
The president insisted that he will continue to raise imports to imports, (not the 1 because it is the day of the innocent). “I am a very superstitious person,” he justified, before launching his threat and saying that tariffs not only defend the economy, but also “the soul” of the United States.
“Whatever the tariffs that impose us, we will impose ours. Whatever taxes that charge us, we will charge ours. If they impose non -monetary tariffs to keep ourselves out of their market, we will raise billions of dollars and create jobs as it has never seen before, ”he said in Congress. Then he assured without foundation that the United States pays multimillionaire subsidies to Mexico and Canada,
“Other countries have used tariffs against us for decades, and now it is up to us to start using them against those other countries. On average, the European Union, China, Brazil, India, Mexico and Canada – and many other countries – charge us tremendously higher tariffs than those that we charge them. It is very unfair, ”he said too.
