Trump is once again pushing for aggressive trade policies, threatening a new round of tariffs that could significantly impact the cost of imported goods in the U.S. He suggests that the U.S. should impose “reciprocal tariffs,” meaning foreign products would be taxed at the same rate as those countries tax American exports.
Trump argues that the move would protect domestic manufacturers and reduce the trade deficit, telling reporters on Thursday, “Long-term, it’s going to make our country a fortune.”
However, economists are sounding the alarm, warning that these tariffs could drive up prices for consumers and make it even harder to bring inflation under control. The U.S. is already grappling with persistent price increases, and additional tariffs could further complicate the Federal Reserve’s efforts to stabilize the economy.
If enacted, these new taxes would add to the trade measures Trump previously imposed during his presidency, including a 25% tariff on steel and aluminum imports and a 10% tax on all Chinese imports.
Trump has also threatened to tax all imports from Canada and Mexico. While he initially postponed those measures after both countries agreed to strengthen border security, the possibility of new tariffs remains on the table.
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