A new week a new round of tariff threats. America’s Donald Trump is flirting with even more tariffs as his trade wars ratchet up across multiple fronts. In the latest threats, Trump is threatening to come after foreign cars.
The Lowdown
But of course that comes with warnings (that are being ignored.) Economists have warned that by adding even more tariffs America faces a deepening trade war that threatens to derail the U.S. economy. The tariffs on cars are understood to amount to about 25% and would join a chorus of other tariffs Trump ‘plans’ to engage and are expected within weeks. On Trump’s part, he has turned to tariffs as a source of revenue to plug the U.S.’s massive debt hole though the consequences of a trade war have the ingredients for economic disaster.
Reminder: Tariffs are paid for by the IMPORTER, not the EXPORTER.
During a news conference on Tuesday, Trump told reporters that things like drugs and semiconductors also will face higher duties when coming into the country in the coming weeks. Trump claimed that some of these tariffs be announced on 2 April. In other tariff news, his planned increased levies on things like steel and aluminum have been delayed; duties on imports from Canada and Mexico have also been repeatedly delayed, and his so-called reciprocal tariffs won’t even kick in until almost April also.