#TrumpTariffs
US President Donald Trump's tariffs are part of a broader trade policy aimed at protecting domestic industries and pressuring trading partners. Here's what's happening
- *Tariff Rates*: Trump imposed a baseline 10% tariff on US imports from all countries, with some countries facing higher rates ranging from 10-50%. Tariffs on China were raised to 125% effective immediately.
- *Affected Goods*: Tariffs target goods imported into the US, including cars, steel, aluminum, and other products. Some exceptions apply, such as bullion, energy, minerals, semiconductors, pharmaceuticals, copper, and lumber.
- *Trading Partners*: Major US trading partners, including Canada, Mexico, and China, are affected. The EU has imposed retaliatory tariffs on roughly €26 billion of US goods exports.
- *Economic Impact*: Experts expect the tariffs to curb growth and stoke inflation. The full scale of the economic impact will depend on retaliatory measures from affected countries.
*Tariff Objectives:*
- *Negotiation Tool*: Tariffs are used to pressure trade partners during negotiations and as a bargaining chip.
- *Punitive Tool*: Tariffs are used to "punish" or "sanction" countries for non-trade issues or unfair trading practices.
- *Macroeconomic Tool*: Tariffs aim to protect domestic industries, decrease US trade deficits, and increase revenue from duties.
*Key Documents and Authorities:*
- *International Emergency Economic Powers Act (IEEPA)*: Gives the executive power to regulate imports during national emergencies.
- *Section 301 of the Trade Act of 1974*: Allows the US Trade Representative to investigate foreign trade practices and impose tariffs.
- *Section 232 of the Trade Expansion Act of 1962*: Enables the Commerce Department to investigate imports that pose a national security risk.