President Donald TrumpHe says on Wednesday will be“Liberation Day”– A moment when he plans to put aA set of definitionsIt will liberate the United States from foreign goods.
Details of the next round of Trump from import taxes are still superficial. Most economic analyzes say that intermediate American families will have to absorb the cost of their definitions in the form of high prices and low income. But Trump is not intended to call the executives to the White House to say that they are investing hundreds of billions of dollars in new projects to avoid import taxes.
It is also possible that the definitions are short -term if Trump feels that he is able to cut the deal after imposing it.
“I am surely open, if we can do something,” Trump told reporters. “We will get something for him.”
At stake is family budgets, America’s emergence as the world’s leading financial power and global economy structure.
Here is what you should know about imminent commercial penalties:
What exactly does Trump plan?
He wants to announce import taxes, including “mutual” definitions that would comply with the prices that other countries receive and explain other benefits. Trump talked about the imposition of taxes on the European Union, South Korea, Brazil and India, among other countries.
He also declared25 % car tariffLast week, he claimed that America had erupted because it imported more goods than exporting it.
“This is the beginning of the liberation day in America,” Trump said. “We will charge the two countries on charges of doing business in our country and take over our jobs, take our wealth, and take many things they were taking over the years. They took out many of our country and our friend and our promise. Frankly, the friend was often much worse than the enemy.”
In an interview on Saturday with NBC News, Trump said he did not disturb him if the definitions caused the high prices of vehicles because cars that contain more American content may be more competitive.
“I hope they will raise their prices, because if they do so, people will buy US -made cars,” Trump said. “I couldn’t care for a lesser degree because if the prices of foreign cars rise, they will buy American cars.”
Trump also suggested that he would be flexible with his definitions, saying he would deal with other countries better than they dealt with the United States. But he still has many other taxes coming on imports.
The Republican President plans to impose taxes on imported pharmaceutical drugs, copper and wood. A 25 % tariff was offered to any country importing oil from Venezuela, although the United States is doing it as well. An additional tax is imposed by 20 % due to its role in the production of fentanel. Trump imposed a separate tariff on the goods from Canada and Mexico for a specific reason to stop drug trafficking and illegal immigration. Trump also expanded the steel and aluminum tariff for 2018 to 25 % on all imports.
Some assistants indicate that customs tariffs are tools to negotiate trade security and border security; Others say the revenues will help reduce the federal budget deficit. Trade Minister Howard Lootnick says they will force other countries to show “respect” Trump.
What can the customs tariff for the American economy do?
Nothing is good, according to most economists. They say that customs duties will be transferred to consumers in the form of high prices for cars, groceries, housing and other commodities. Corporate profits can be less and growth is more slowdown. Trump confirms that more companies will open factories to avoid taxes, although this process may take three years or more.
Lavir economists’ estimatesCar definitions, if fully implemented, can increase the car costs by $ 4,711, although he said he was looking at Trump as a smart and smart negotiator. Goldman Sachs estimates that the economy will grow this quarter at an annual rate of only 0.6 %, a decrease of 2.4 % at the end of last year.
Mayor Andrew Jintater of Columbus, Ohio, said on Friday that the customs tariff can increase the average cost of the house by 21,000 dollars, which makes the cost capacity more than an obstacle because building materials will cost more.
Treasury Secretary Scott Payet suggested that the customs tariff will be a single -time modification of prices, instead of the start of an inflationary vortex. But the Bess’s conclusion depends on the customs tariff being brief or included, rather than leading other countries to revenge on their customs tariffs or leak into other sectors of the economy.
“There is an opportunity for commodities that begin to liquidate the pricing of services,” said Samuel Reigns, a Wisdomtree strategic expert. “Car spare parts become expensive, then car repair becomes more expensive, then the car insurance feels pressure. While the goods are focus, the definitions may have a long -term effect on inflation.”
How do other countries consider new definitions?
Most foreign leaders believe that the customs tariff is devastating to the global economy, even if they are ready to impose their own counter measures.
Canadian Prime Minister Mark Carney said that Trump’s introductory threats had ended the partnership between his country and the United States, even when the president spoke on Friday about his phone call with Carney in relatively positive terms. Canada has already declared revenge definitions.
French President Emmanuel Macron said that the customs tariff is “not coherent”, and it will mean “breaking value chains, creating inflation in the short term and destroying jobs. It is not good for the American economy, nor for European, Canadian or Mexican economies.” However, Macron said that his nation would defend the goal of dismantling the definitions.
Mexican President Claudia Shinbom has avoided dreams against definitions, but she believes that it is very important to defend jobs in her country.
The Chinese government said that the Trump tariff will harm the global trading system and will not resolve the economic challenges set by Trump.
“There are no winners in commercial wars or wars of customs tariffs, and the development of any country and prosperity is not achieved by imposing customs tariffs,” said the Foreign Ministry spokesman.
How does Trump fall on “Editing Day”?
Based on Trump’s general statements, April 2 is at least the third “liberation day” that he identified.
At a gathering last year in Nevada, he said on the presidential election day, November 5, it will be “liberation day in America.” He later gave his inauguration the same mark, announcing in his speech: “For American citizens, January 20, 2025, is the day of liberation.”
His repeated appointment to the term is a sign of the importance of Trump on the customs tariff, and his obsession with the eighties. Dozens of other countries know their own form of their liberation days to recognize events such as overcoming Nazi Germany or the end of a former political system that is repressive.
Trump believes that his definitions provide national salvation, but the decline in confidence in the stocks and the stock market indicates that many audiences believe that the American economy will pay the price of its aspirations.
“I don’t see anything positive on liberation day,” said Philip Brown, a financial professor at Kelog Faculty of Administration at North Western University. “The American economy will hurt. Other countries will decrease.”
This story was originally shown on Fortune.com
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