Lonski Group President John Lonski breaks the economic plan of President Donald Trump while appearing on ‘Varney & Co.’
President Donald Trump On Thursday, he signed an executive command that imposes reciprocal tariffs to US trade partners, effectively increasing their import duties to match those charged on US exports.
“Today is big: reciprocal tariffs,” Trump wrote on his social media platform, Truth Social, on the eve of the announcement. His executive order begins a procedure that could lead to reciprocal tariffs to impose within a few weeks after the trade and economic team to study American trade relations in the White House studies, an official told reporters at a conference call.
Trump’s administration aims to complete its trade review by April 1 and plans to target what it calls first “the most striking” issues, including countries with large trade surpluses with USA and the highest tariff rates on US goods. The president’s tariffs would suit the higher tariff rates of other countries and aim to oppose other trade obstacles such as the load of regulations, taxes added to value, state subsidies and courses and negotiations with some countries to reduce these obstacles.
The new analysis of economist Goldman Sachs led by Jan Hatzius looked at how reciprocal tariffs They could also be able to determine that they would probably increase the average tariff imposed on imports to the United States, although they could help reduce trade uncertainty.
President Donald Trump plans to perform a plan for reciprocal tariffs on US trade partners. (Jim Watson / AFP via Getty Images / Getty Images)
“If applied at a product specific to the product (eg US tariff on EU cars, it would equate the same rate that the EU applies to cars from the US), the average tariff in the US can increase by about 2 [percentage points]We evaluate. If applied at the Earth level, the effect could be smaller, “Goldman’s economists wrote.
“Although reciprocal tariff politics is a risk, it is also possible that it could gradually reduce the uncertainty of trade policy after being announced.
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“President Trump comments suggest that he considers this policy an alternative of 10-20% to the universal tariff he has discussed in the past,” economists wrote. “If US tariffs are set up to match Sides of the tariff rateTheoretically, this would be less likely that US tariffs would increase significantly. This could also state some trade partners to reduce the tariffs (and theoretically and reduction of US tariffs). “
They also said that there are risks associated with reciprocal tariffs in the event that Trump’s administration is trying to equalize non-Tariff obstacles (NTB) to the store, which they note is “difficult to quantify, but may result in a greater increase.”
“The main risk is that Trump’s administration could consider taxes added (VAT) in the budget, which would further increase the average effective tariff rate for 10 PP,” economists wrote. “However, doc President Trump He criticized the patats in some countries, at this point there is no indication that the reciprocal tariff policy he plans to announce would include a PTV in the budget. “
The reciprocal tariffs would equate US tariffs to import with those with which American exporters abroad. (Reuters / Carlos Barria / Reuters Photos)
Although reciprocal tariffs may be the latest step in Trump’s efforts to reshape US trade policy, the report states that it is likely that the president’s mandate progresses.
“Of course, even if President Trump at the moment considers a reciprocal tariff as an alternative to greater measures, we enter only in the fourth week of a four -year presidential term, and it seems that there may be many further announcements of the tariff, even if if if further announcements of the tariff This week announces reciprocal tariffs, “Goldman’s economists noted.
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Tariffs are taxes on imported goods or services. (Reuters / Mike Blake / Reuters Photos)
Kevin Hassett, Director National Economic CouncilThey told reporters on Wednesday, “reciprocal tariffs were an absolutely high priority for the president and were forever” and they hinted that discussions had started with foreign trade partners.
“Our trade partners charge us more in tariffs than we charge them. And this is something he has talked about before, and today there will be a lot more actions. We even started having negotiations with other countries,” he said.
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Hassett asked what negotiations with other countries meant and replied: “We just laid the foundations for discussions about reciprocal trade.”
He added that the Howard Lutnick, Trump’s candidate to be the secretary of the trade, led those meetings.
Fox Business’ Kristen Altus and Reuters contributed to this report
