WashingtonThe White House confirmed on Tuesday that President Donald Trump is scheduled to impose a new tariff on Wednesday, although the specific details related to the scope and size of these commercial barriers are still unclear. The advertisement, which will be issued by the Roses Park at 4 pm East time (2000 GMT), has sparked major concerns between companies, consumers and investors about an intense global trade war.
Trump was explicit about his plan for “Liberation Day”, as he wandered on April 2 as a turning point with a tariff that could shake the World Trade System. According to White House spokeswoman, Caroline Levitte, a mutual tariff will be imposed immediately on countries that have imposed duties on American goods. In addition, a 25 % tariff will enter into car imports on April 3.
Treasury Secretary Scott Payette with Republican legislators participated that these new definitions will represent the highest level of definitions that the two countries will face, but they could decrease if these countries meet the demands of the administration, as the Republican actor Kevin Herne of Oklauma explained.
This new customs tariff comes in the foreground of imports that were previously implemented on aluminum and steel imports, as well as a higher tariff for Chinese goods. Despite the previous threats of additional definitions, which have been canceled or delayed, the last announcement indicates that Trump is determined to follow up.
Economists from the Federal Reserve in Atlanta recently revealed that financial corporate leaders expect this customs tariff next year to reduce employment and economic growth. While the full details of definitions are still pending, reports indicate that the Trump team is considering a plan that will impose an increase of 20 % in imports on almost all imports, rather than targeting specific countries or products. This can generate revenue for more than $ 6 trillion, which will be redistributed to American consumers as a opponent.
On the other hand, the Wall Street Journal reported that the American trade representative may be an alternative option with a smaller group of definitions, which is likely not to be high as a 20 % global tariff.
While the details are still unconfirmed, President Trump’s commercial policies have already strained relations with the main American commercial partners. Canada has pledged revenge for its customs tariffs, and Mexican President Claudia Shinbom has discussed the plans with Canadian Prime Minister Mark Carne to address these “unjustified commercial measures”.
Trump’s aggressive position on customs tariffs stems from his belief that contracts for free trade have undermined American manufacturers by contributing to a trade deficit exceeding $ 1.2 trillion. However, economists warn that the president’s solution – the major definitions – is likely to increase prices locally and externally, which will eventually harm the global economy. According to a study conducted by the Yale University Budget Laboratory, the effect of a 20 % tariff may cost the regular American family an additional $ 3400 annually.
The uncertainty surrounding Trump’s commercial policies has already started influencing the American economy. Business and consumer confidence decreased, and the fluctuations in the stock market have been characterized by a significant decrease of about $ 5 trillion in American stocks since mid -February. Investors were hesitant, awaiting more clarity in Trump’s tariff measures.
Globally, manufacturers were also affected, with factories in countries ranging from Japan to the United Kingdom to the United States, which reported a decrease in activity in March as companies are preparing for the impact of the new customs tariff. While some companies rushed to obtain products for consumers before the definitions entered, American manufacturing witnessed a contraction after two months of growth, with the costs of inputs increased to their highest levels in nearly three years. Definitions were cited as a major concern by factory managers, and experts such as Jeffrey Roche, chief economist at LPL Financial, warned that high prices along with a slowdown in commercial activity could indicate the emergence of stagnation – a period of stagnant economic growth and high inflation.
Since the world is waiting for more information about the details of the new definitions of President Trump, the global economy remains on the edge, with fears that new measures can exacerbate economic instability.
