Trump behind his tariffs: the method behind it
Trump behind his tariffs: the method behind it
If you are surprised by President Donald Trump's collective bargaining plan, you are not alone. Trump's economic team has made numerous contradictory statements about the reasons for the tariffs, which caused American multinational companies to be unsafe in their planning and that foreign states are unclear in their negotiations. Trump introduced massive and strict import taxes on Canada and Mexico, just to postpone them against relatively little from America's neighbors by one month. Flat-rate tariffs on Chinese goods are activated, but a canceled exception for small articles to massive confusion at the US mail services and was temporarily put back into force. In addition, more Customs on steel and aluminum Rel = "NOFOLLOW" TARGET = "_ blank" https://www.cnn.com/2025/07/business/tatiffs- reciprocal-trump/index.html "> reciprocer tariff plan should be presented.
The basics of Trump's tariff strategy
This could only be the beginning: Trump indicated that tariffs are being introduced to the European Union, and he has also promised a more comprehensive tariff regime that affects every single product that is imported into the United States.
tariffs play an important role in the economy. The United States have often used tariffs to protect their industry, farmers, technology and national security interests. While earlier governments - including Trump's first term in the customs of the customs - mostly acted with a scalpel as a preferred tool, Trump is now threatening to take the shelter in his second term. He has announced that it can raise tariffs on many products that are not even produced in the USA.
The reactions of the economy
The corporate world in America, outraged by the tariffs, has emphasized this lobbying. Mainstream economists largely agree that Trump's tariff plan will heat inflation and to slow down economic growth in the United States. Last month, the editors of Wall Street Journal, who normally support Trump's politics, described his tariff plan as "the stupidest trade wars in history."
Nevertheless, there is a methodology behind Trump's tariff plan. He uses and promises to use tariffs from to increase: to increase the income to increase and To put rival countries in their barriers.
Trump's destinations with tariffs
These reasons often contradict each other, which makes negotiations difficult and makes business planning impossible. For example, a country that Trump occupies with punitive tariffs could come to the negotiating table to solve a conflict, as Canada and Mexico did to reduce the flow of fentanyl and undocumented immigrants to the United States. But if Trump plans to introduce nationwide tariffs to increase the income and reciprocal tariffs for the production of a trade equal weight, there is the possibility that Mexico and Canada will also be loaded with tariffs.
Trump's logic behind the tariffs, even if it is worth discussing. America has a huge budget deficit, and Trump said that the tariffs should compensate for the lost income - in particular his tax relief from 2017, which he would like to extend and expand. In a main speech at the annual meeting of the World Economic Forum, Trump predicted that his tariffs would bring hundreds of billions of dollars-perhaps even trillions-to the US treasury.
final considerations about Trump's tariffs
In summary, it remains to be seen that Trump's tariff policy is a multifaceted tool in order to achieve different goals. The problem is that it is difficult to achieve all of these goals at the same time. If a country does what Trump wants to avoid tariffs, the United States cannot increase the income required. If the United States is still imposing tariffs to foreign products, the countries have no incentive to get to the negotiating table. And if the trade has to be brought into balance, the implemented tariffs often lead to retaliatory tariffs that can trigger a trade war that damages American industry and consumerswhat is already defined and what comes next
Last week, Trump prescribed a 10 percent customs on all Chinese goods imported in the USA in addition to the existing tariffs in China. After these tariffs came into force on Tuesday, China quickly reacted to some chips and metals with tariffs, an investigation against Google began and put the manufacturer of the brands Calvin Klein and Tommy Hilfiger on the list of unreliable companies.But Trump already began to withdraw these tariffs and suspended the taxes on goods worth $ 800 or less until the Ministry of Commerce can develop a system to improve this difficult to follow. Trump also paused the 25 percent tariffs on Mexican and Canadian imports up to at least 1. March .
Trump told journalists on Air Force One that he plans to announce a 25 percent customs on all steel and aluminum imports to the United States on Monday. China has flooded the global market with cheap steel, which affects production worldwide - including in the USA. The steel tariffs in Trump's first term in term have boosted domestic employment and production - but also let prices rise.
Trump also announced that he wanted to hold a separate press conference on Tuesday or Wednesday to massive new reciprocal To announce tariffs , which may compensate for the tariffs of other countries to US goods for dollars.
"Quite simply: If you calculate tariffs, we will charge you some," said Trump. In addition to the comprehensive 10 percent customs on all imports and threats to the EU, Trump has also indicated in the past that he could use tariffs to force Denmark to hand over control of Greenland to the United States.
Details about how extensive the new tariffs would be or when they could possibly come into force have not yet been provided.
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