The president of the United States, Donald Trump, promised to impose reciprocal rates About countries he believes to treat the US unjustly in commerce, either through high rates or non -tariff barriers.
Trump said his new tariffs will create jobs and boost domestic manufacturing.
However, the imposition of higher rates on other nations will probably make many consumer goods more expensive at a time when many Americans’ fears about an imminent recession grow.
With promises to reduce national debt and rebalance global trade, Trump has already promulgated comprehensive tariffs against important business partners and key sectors-including steel and aluminum-while threatening more tariffs on others.
Policy has faced threats to retaliate from important business partners.
US commercial tariffs may impact some of their largest trading partners
In March, the administration imposed a 25% rate on all aluminum and steel imports.
Canada is the largest supplier of both for the US. However, such rates may have a contrary effect on industries they intend to protect.
For example, William Opplinger, CEO of Alcoa, one of the largest aluminum manufacturers in the US, warned in February that aluminum tariffs could cost 100,000 US jobs, including 20,000 of its industry.
Trump recently announced that a 25% rate on finished cars will come into force on April 3, and a 25% auto parts rate will come into force until May 3.
Even though more automotive manufacture moves to the US, Americans are destined to pay higher prices due to the higher cost of domestic production or increased car import costs.
Trump’s trade policies have been driven by a number of goals that differ from the justification offered by previous administrations.
Trump has linked tariffs on America’s three largest trading partners – Mexico, China and Canada – allegations that the three nations are not doing enough to help contain illegal and fentanyl immigration entering the US, for example.
Previous administrations predominantly used tariffs as a means of protecting national security interests and supporting domestic industries.
