Trump plans to announce the mutual tariff on April 2. These definitions will target countries that have imposed long -term tariffs and restrictions on the United States.
Officials who realize this issue say this announcement of “liberation day” will be more specific than Trump’s comprehensive threats. It will reduce market fears and commercial markets about a large -scale trade war.
However, the advertisement will increase the definitions of Trump already.
While these definitions will focus on a group of countries, others will be exempted. Officials told Bloomberg that the administration will not reveal the definitions based on industry on the same day, although Trump has hinted to the possibility.
Trump pledged to provide a special tariff for the sector targeting industries such as cars, semiconductor chips, medicines, and wood. It is specifically stated that the tariff of cars will be included in the same batch.
While the automatic tariff is still under study, Trump did not refuse to implement it at a later time.
It is possible that avoiding the procedure in the April 2 advertisement is a comfort for the auto industry, which is already concerned about the potential stress of multiple tariff currents on supply chains.
“Liberation Day” fees will be applied in Trump immediately
The next rates will be implemented and imposed immediately for an immediate effect. Officials say this will lead to further damage to the relations between the United States and allied countries, with possible reactions that lead to a back and forth commercial war.
Although there is nothing certain yet, as with Trump, the decisions can be unexpected until it is officially announced. The Trump administration is in discussions on how to enhance the trade strategy. Despite these internal negotiations, Trump himself is the power of aggressive intentions. It supports high definitions. This is because Trump looks at the raising of import taxes as a way to generate revenues to the American government.
On Friday, during a meeting of the Oval Office, Trump said, “April 2 will be the day of liberation of America. We have separated by every country in the world and a friend and enemy.”
Trump believes that these definitions can bring “tens of billions”. Another assistant recently said that the revenues may reach trillion dollars over 10 years.
However, the market shows different signs. He negatively responded to Trump’s initial definitions in Canada, China and Mexico, as well as his recent tariff for minerals such as steel and aluminum.
The market drop has pressure the White House due to economic instability. Trump often measured his success as a president by performing the main stock indicators. Therefore, if the definitions cause the market to decrease, it is badly reflects its presidency according to its criteria.
We focus the United States on a “mutual tariff” for a fair trade
Trump officials admitted that the list of countries facing a new tariff may not include everyone. Some countries may be exempt.
For some products, such as steel, new definitions cannot be added over the existing customs tariff. Instead, they may be modified or applied differently, which reduces the total impact on these industries.
Trump is increasingly talking about mutual measures. This means that it focuses on making trade fair by imposing a tariff only on countries that impose a tariff on the United States or has an unfair commercial advantage.
Officials say it is not certain countries to be included in the targeted tariffs. Trump mentioned the European Union, Japan, South Korea, Mexico, India, China and Canada, and invited the commercial aggressors in discussions with officials.
Despite the narrower in the range, Trump’s proposal is still much larger than his first term. It challenges the tolerance of the market with inability to predict and includes a series of import taxes.
Kevin Haysit, director of Trump’s National Economic Council, noted that the markets are exaggerating the extent of definitions.
“One of the things we see from the market is that they expect that these great definitions will be really in every country,” he said in an interview with Larry Kudlo on Fox Business. Larry Kudlo occupied the same position as Hyssate during the first period of Trump.
Haysit said the market expectations should be changed because all countries do not cheat the United States on trade. Customs duties are for some countries only.
The “Liberation Day” event can include some customs tariffs
In the past, Trump imposed, then expanded the scope of customs tariffs on Canada and Mexico due to the alleged failures in curbing fentanel shipments to the United States, the future of these definitions is still uncertain, as Trump’s pause imposed on many of them is close to expiration. The officials noted that the definitions can be raised either completely or replaced with an overall amount.
Treasury Secretary Scott Paystint said last week that the steel and aluminum tariff may not necessarily be added to the specified country rates.
“I will have a better feeling as we are approaching the second of April. So, it can be stacked,” he told Fox Business.
Bessent also determined about 15 % of countries as the most important perpetrators of crime.
He said: “It is 15 % of the two countries, but it is a large amount of our trading volume,” describing them as “dirty 15”. He said that these 15 countries are the primary goal.
Before giving up the idea, it was reported that the Trump team is a three -level global tariff system that classifies the two countries based on the restriction of their commercial barriers, according to sources familiar with the discussions. The Wall Street Journal previously reported this approach.
Trump sees definitions as a strategic tool
Trump sees the customs tariff as a decisive tool to encourage new investment in the United States while achieving revenues that could compensate for the tax discounts led by Republicans.
“It will make the definitions of America more competitive. It will stimulate investment in America,” said Stephen Miran, Chairman of the Economic House of Economists in Trump.
The administration argues that foreign governments and companies that have pledged trillion dollars in investments prove that Trump’s strategy is effective. Miran Fox Business was told last week that the discussions are continuing as the deadline approached on April 2.
“I think it is fully reasonable expected that we can collect trillion dollars from the tariffs over the 10 -year budget, and as I said before, using these revenues to finance low prices on American workers, on American companies,” he said.
Moreover, companies can adapt to customs tariffs, especially if not all countries are affected. According to a survey conducted last year by the Peterson Institute of International Economy, US customs revenues from China increased after the imposition of definitions in 2018, but then reached its peak in 2022 and witnessed a sharp decrease in 2023.
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Source: https://www.cryptopolitan.com/trump-April-2nd-libration- Day-New-tarifs/