#TrumpTariffs
Donald Trump's tariffs have been a significant aspect of his economic policy, particularly in his second term. Here's a breakdown ¹:
- *Tariff Rates*: Trump imposed a baseline 10% tariff on nearly all US imports, effective April 5, 2025. Additionally, tariffs on goods from 57 trading partners briefly rose to between 11% and 50% on April 9, but were suspended within hours for all countries except China.
- *Trade Wars*: The US has engaged in trade wars with several countries, including:
- *China*: Tariffs on Chinese imports rose to 145%, while China imposed a minimum 125% tariff on US goods. Recent developments include a 90-day reduction of tariffs to 10% starting May 14.
- *Canada and Mexico*: Initially imposed 25% tariffs, later granting exemptions for goods compliant with the USMCA.
- *Other Countries*: Trump announced "reciprocal tariffs" targeting countries with trade barriers against the US.
- *Impact*: Higher tariffs have contributed to:
- *Downgraded GDP Growth Projections*: The Federal Reserve and OECD have revised their growth forecasts downward due to the tariffs.
- *Stock Market Volatility*: The announcement of tariffs led to market fluctuations and concerns about potential recession.
- *Rationale*: Trump argues that tariffs will:
- *Protect American Workers*: By discouraging imports and promoting domestic manufacturing.
- *Fund Government Spending*: Although economists argue that tariffs are paid by US consumers and businesses.
- *Legality*: Trump's use of tariffs has raised questions about:
- *Constitutional Authority*: Congress has granted the President authority to impose tariffs for national security reasons.
- *International Trade Rules*: The WTO has ruled against some of Trump's tariffs, but the US has blocked new appointments to its Appellate Body.
Some specific tariffs include:
- *Steel and Aluminum*: 25% tariffs imposed on all imports, aiming to strengthen domestic production.
- *Automobiles*: 25% tariff on imported cars, including those from Mexico and Canada