His approach encompasses both comprehensive measures, such as a universal tariff on foreign imports, and targeted actions against specific industries, regions, or countries to achieve his policy objectives.
Trump’s proposed levies have been inconsistent, ranging from minimal rates to those exceeding 200%, creating uncertainty amongst international partners and businesses.
Here is a summary of Trump’s trade-related actions and threats.
BROAD TARIFFS
Treasury Secretary Scott Bessent advocates for a gradual implementation of universal import tariffs, starting at 2.5% with monthly increases, as reported by the Financial Times. Trump suggests potentially higher rates. Whilst tariffs historically formed a significant portion of U.S. tax revenue, they now represent a minimal share. Economists warn that these policies could increase inflation as businesses transfer additional costs to consumers.
On Friday, Trump announced plans for “reciprocal” tariffs, apparently targeting nations that impose duties on U.S. goods, though specific rates remain undefined.Trading partners might respond with retaliatory tariffs on U.S. exports of agricultural products, energy resources, and machinery, potentially triggering a global trade conflict and creating business uncertainty.
