US President Donald Trump announced a significant tariff plan last week, aiming to reshape global trade relationships and bolster American industry. However, a 90-day suspension of higher tariffs on most countries has brought the initiative back under control.
Here are five key goals from Trump’s original trade plan, with an assessment of their current status:
1. Better Trade Deals
Trump aims to renegotiate trade agreements with countries that have been deemed “worst offenders.” The US is currently in talks with South Korea and Japan, among others. While the administration claims over 75 world leaders have reached out to offer concessions, the outcome remains uncertain.
2. Boosting American Industry
Tariffs are intended to rebuild America’s manufacturing base by shielding it from unfair foreign competition. However, the president’s on-again, off-again tariff moves have created instability, making it difficult for businesses to predict what’s next. The future of industries such as car manufacturers and steel producers is uncertain.
3. Facing Off with China
Trump aims to drop a hammer on China, which he believes has been taking advantage of the US. However, picking a fight with China comes at great risk, potentially alienating allies who depend on Chinese trade.
4. Raising Revenue
The planned tariffs are expected to generate $2 trillion in new revenue over 10 years. If Trump sticks with his baseline tariffs, plus additional levies on certain imports and larger ones on China, he’ll likely achieve this goal at least until domestic production increases.
5. Lower Prices for US Consumers
Trump promises that a surge in domestic production will lead to stronger competition and lower prices for consumers. However, economists warn that new tariffs will drive up consumer prices, particularly affecting lower-income Americans.
With the suspension of higher tariffs on most countries, Trump’s prospects for achieving his trade goals are uncertain. While some progress has been made, the road ahead remains fraught with challenges.
Source: https://www.bbc.com/news/articles/c209x48ndjpo