The president of the United States, Donald Trump, was about to impose new reciprocal tariffs on world commercial partners on Wednesday, in the decades of trade based on rules, threatening cost increases and probably causing reprisals from all parties.
The details of Trump’s “Day of Liberation Day” plans were still being formulated and kept closely before an Rose garden advertisement ceremony of the White House scheduled for the 4 pm east time (1 am PKT).
The new duties must immediately take effect after Trump announced them, the White House spokeswoman, Karoline Leavitt, said a separate global tariff over 25 percent on automatic imports will enter into force on April 3.
Trump for weeks has said that his reciprocal rate plans are a movement to match the tariff rates of the USA. But the format of the duties was not clear in the midst of reports that Trump was considering a universal rate of 20pc.
A former Trump first period commercial official said Reuters that Trump was more likely to impose integral tariff rates to individual countries at somewhat lower levels.
The former official added that the number of countries facing these tasks would probably exceed the approximately 15 countries where Treasury Secretary Scott Besent had previously said that the administration focused due to its high commercial surpluses with the United States.
Besent told the legislators of the Chamber of Republican representatives on Tuesday that reciprocal tariffs represent a “limit” of the highest tariff level in the United States that countries will face and could fall if they meet the demands of the administration, according to Republican representative Kevin Hern.
Ryan Majerus, a former official of the Department of Commerce, said that a universal rate would be easier to implement a restricted timeline and could generate more income, but individual reciprocal tariffs would adapt more to the unfair commercial practices of the countries.
“Anyway, today’s impacts will be significant in a wide range of industries,” said Majerus, a partner of the law firm King and Spalding.
Stacked tariffs
In just over 10 weeks since he assumed the position, the Republican president has already imposed new tariffs of 20 percent to all imports of China on fentanil and completely restored the tariffs of 25 pieces in steel and aluminum, which extends these to products of almost $ 150 billion in downstream products.
A one -month relief for most Canadian and Mexican goods of their tariffs related to 25 pieces will also expire on Wednesday.
Administration officials have said that all Trump rates, including previous rates, are stacked, so a car built by Mexican was previously charged 2.5pc to enter the US reciprocal that Trump can impose Mexican goods.
The growing uncertainty about duties is to erode the confidence of investors, the consumer and the business in ways that could delay the activity and increase prices.
The economists of the Atlanta Federal Reserve Bank said that a recent survey showed that corporate financial chiefs expected tariffs to be raised their highest prices this year while reducing hiring and growth.
Shakey investors have sold actions aggressively for more than a month, cleaning almost $ 5 billion of the value of US shares since mid -February. Wall Street ended up mixed on Tuesday with investors trapped in Limbo pending details of Trump’s announcement on Wednesday.
Retaliation measures
The commercial partners of the European Union to Canada and Mexico have promised to respond with retaliation and other countermeasures, even when some have tried to negotiate with the White House.
Canadian Prime Minister Mark Carney and Mexican president Claudia Sheinbaum spoke on Tuesday about the Canada’s plan to combat unjustified commercial actions “by the United States, the Carney Office said.
“With challenging times ahead, Prime Minister Carney and President Sheinbaum emphasized the importance of safeguarding the competitiveness of North America and respecting the sovereignty of each nation,” said Carney’s office in a statement.
American companies say that a “Buy Canadian” movement is already making it difficult for their products to reach the shelves of that country.
Trump has argued that US workers and manufacturers have been harmed for decades by free trade agreements that have reduced barriers to global trade and have fed the growth of an American market of $ 3TR for imported goods.
The explosion of imports has come with what Trump sees as an obvious inconvenience: an enormously unbalanced trade between the United States and the world, with a commercial deficit of goods that exceeds $ 1.2tr.
Economists warn that their remedy, strong tariffs, would raise prices at home and abroad and hammer the global economy. According to the Yale University Budget Laboratory, a 20PC tariff at the top of the already imposed, it would cost the United States average home at least $ 3,400, according to the Yale University Budget Laboratory.
