Washington , DC [ US ], March 20 (ANI): White House authorities are getting ready to enforce comprehensive new measures tariffs on most imports by April 2 , escalating US President Donald Trump 's ongoing trade war In an unparalleled step that he has termed "Freedom Day," the Washington Post reported.
Through his first two months back in office, Trump has already raised tariffs on an estimated US D 800 billion in imports , focusing on major trading partners such as China, Mexico, and Canada. This approach is notably confrontational. tariffs has sent shockwaves throughout the globe markets , leading to fluctuations on Wall Street, raising concerns about an economic downturn, and provoking counteractions from other countries.
In spite of growing economic worries, high-ranking government officials are currently striving to considerably broaden the extent of these initiatives. tariffs , handling responsibilities related to what sources close to the negotiations characterize as "trillions" of dollars worth of assets. imports This drastic step has alarmed economists, unnerved Republican lawmakers in Congress, and even left White House partners raising doubts about the practicality of enforcing such a broad-ranging trade taxation system.
Trump has framed the upcoming tariffs As an essential measure to compel businesses to relocate their manufacturing operations back to the United States and to secure economic advantages from foreign administrations. On Monday, when addressing journalists, he reaffirmed his conviction that this is crucial. US has faced exploitation due to unjust trade practices.
This marks a day of freedom for our nation as we will reclaim much of the wealth that we imprudently surrendered to various nations, both allies and adversaries. Trump said.
Referred to as the "mutual tariff" scheme, Trump His plan seeks to apply tariffs on imported products matching those of domestic items. tariffs that other nations place on American goods. Trump often referenced this idea during his campaigning, asserting that other countries exploit the situation US by implementing significantly higher trade barriers.
Should India, China, or any other nation impose a 100% or 200% tariff on products made in America, we will respond by imposing an identical tariff on their goods, Trump stated in a campaign video. "To put it simply, 100 percent means exactly that—100 percent. For every charge they impose on us, we will respond with equal measures—a tariff for a tariff, precisely the same amount."
While Trump His argument echoes among his supporters; however, economic specialists have cautioned that many advanced economies already possess comparable tariff structures. Data from the World Trade Organization indicates that the average US tariff is 2.2 per cent, compared to Japan's 1.9 per cent and the European Union's 2.7 per cent. Matching foreign tariff rates could send US Import duties are rising to heights last witnessed in the early 1930s, possibly hitting an average of 20 percent, as stated by Edward Gresser, a specialist in trade policy.
The possible outcomes of this change have ignited intense discussion among administration officials. Vice President JD Vance and Commerce Secretary Howard Lutnick are key figures in these debates. White House Trade Adviser Peter Navarro and Treasury Secretary Scott Bessent are involved in talks regarding the implementation of new strategies. Trump His vision while reducing economic impact, as reported Washington Post.
The past two months have already caused damage to American businesses and consumers, yet the situation persists." April 2 Deadlines can make everything else seem insignificant, just like a storm in a teacup," stated Joseph Politano, an economic policy analyst at Apricitas Economics. "While we aren't sure about their exact plans, what they've indicated so far suggests something quite transformative. tariffs on all US imports ."
Enforcing such an extensive tariff system presents significant logistical and legal hurdles. The Office of the US Trade Representative ( US The TR is tasked with implementing the strategy; however, insiders within the administration have raised doubts about whether the organization possesses the necessary resources to execute targeted and effective reprisals. tariffs for each trading partner.
Administration officials have debated how to categorise countries for tariff assessments. One proposal involved sorting trade partners into three groups--high, medium, or low tariffs --but this idea was ultimately discarded in favour of setting unique rates for each country. This individualised approach, however, adds another layer of complexity to an already daunting task.
Trump has some legal authority to impose tariffs immediately under existing trade laws, particularly against China, thanks to a 2018 investigation into Chinese trade practices. Additionally, a 1930 law allows the President to impose tariffs up to 50 percent reduction for countries identified as engaging in discrimination US goods. However, imposing widespread tariffs Beyond this limit might necessitate getting approval from Congress—which the administration may find difficult to obtain.
To ensure legal viability, US Ambassador Jamieson Greer and Secretary Marco Rubio are collaborating to shape the policy so that it can withstand possible legal hurdles. In contrast, Peter Navarro is advocating for swift execution despite reservations expressed by more prudent colleagues.
Even before the complete specifics of the plan are revealed, globally markets Meanwhile, crucial sectors are preparing for potential effects. Over the last four weeks, the S&P 500 has declined by more than 8 percent, whereas the Nasdaq has tumbled almost 13 percent. Economic signals are raising red flags, as a closely monitored consumer confidence index has reached its weakest point since November 2022.
In February, manufacturing production reached its peak over the last 24 months; however, experts think this surge is merely a temporary response as companies rushed to build up their supplies of raw materials beforehand. tariffs make imports More costly. "Producers hurried to manufacture products in February prior to significant tariffs on imports might be enforced, along with handling a short-term surge in orders triggered by tariffs," noted Samuel Tombs, chief US economist for Pantheon Macroeconomics.
In the meantime, sectors encountering international competition are urging the administration for protectionist measures. tariffs The National Christmas Tree Association is currently looking for tariffs Regarding artificial Christmas trees, suggesting that they are inexpensive products from China. imports are undermining U.S. farmers. In parallel, the Southern Shrimp Alliance is requesting tariffs on imported frozen shrimp, leading to a sharp decline in local prices. US From $3 per pound in the 1980s down to approximately US D 1.25 at present.
Various sectors are also looking for assistance.
The VP of JM Smucker Co., Michael Madriaga, has voiced complaints regarding the European Union. tariffs up to 24 percent off US jams and jellies' exports, which he claims have hindered American sales in Europe while permitting almost US D €238 million worth of comparable European goods to inundate US market, the Washington Post reported.
Even with opposition, the administration remains resolute. In an interview with Fox Business, Treasury Secretary Scott Bessent stated that the updated tariff strategy will take into account currency manipulation, labor standards, and various economic policies from trade partners. "A numerical score will be assigned to each nation, which will dictate their corresponding tariff rate," Bessent explained, noting his expectation for numerous countries to adjust their rates accordingly. tariffs before the US duties take effect.
White House Spokesperson Kush Desai maintained that officials from the administration are unified in their belief that significant measures are necessary.
"Despite the ultimate mutual tariff scheme for April 2 remains undisclosed by President Trump , each member of the Trump The administration is united on finally leveling the playing field for American industries and workers," Desai stated. " President Trump has gathered the most skilled and talented trading team in recent American history to restore American prominence, and they are diligently working with the same strategy in mind."
As the April 2 As the deadline looms, businesses, investors, and government officials are preparing for potentially the biggest change yet. US trade policies over the years. Despite Trump and his advisors continue to firmly believe that tariffs The ultimate beneficiaries will be American workers; however, the initial effect has led to uncertainty, market volatility, and increasing concerns over potential economic upheaval. (ANI)
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