Trade tensions may increase as a result of President Donald Trump’s announcements that he intends to impose reciprocal tariffs on several nations. According to Trump, the announcement is expected to take place early the following week, perhaps on Monday or Tuesday.
According to Trump, the objective is to apply tariffs on American imports that are equivalent to those that trading partners apply on American exports in order to guarantee that the United States is treated “equally” with other nations.
Increased import duties are seen by the Trump administration as a way to raise money and possibly offset the expenses of extending the tax cuts from 2017.
Trump’s adviser Peter Navarro recommended giving priority to nations like China and India that have significant trade deficits with the United States and comparatively high tariffs, though the precise nations are still unknown.
Car-related tariffs are being considered in an effort to level the playing field in trade. Auto imports are currently subject to a 2.5% tariff in the United States and a 10% tariff in the European Union.
The action is in line with Trump’s campaign pledge to reshape international trade relations in the United States’ favor. Trump has applied tariffs to trade deficits and other policy objectives, like stopping drug trafficking and illegal immigration.
