#TrumpTariffs

Donald Trump's tariff policies are a key aspect of his economic strategy, utilized in three primary ways¹:

- *Negotiation Tool*: Tariffs are used to pressure trade partners during negotiations, increasing US leverage to secure new trade agreements, such as the US-China Phase One trade deal.

- *Punitive Tool*: Tariffs are imposed to "punish" or "sanction" countries for unfair trading practices or non-trade issues, allowing the administration to easily escalate tariff rates.

- *Macroeconomic Tool*: Tariffs support various macroeconomic goals, including:

- *Protecting Domestic Industries*: Shielding industries like steel from unfair practices and promoting domestic manufacturing.

- *Reducing Trade Deficits*: Decreasing US trade deficits through strategic tariff implementation.

- *Increasing Revenue*: Generating revenue from duties, although successful reshoring might limit this revenue stream.

Some notable aspects of Trump's tariff policies include:

- *Legal Authorities*: Tariffs are imposed under various legal authorities, such as the International Emergency Economic Powers Act (IEEPA), Section 301 of the Trade Act of 1974, and Section 232 of the Trade Expansion Act of 1962.

- *Reciprocal Tariff Exceptions*: Certain goods, like those loaded onto vessels before tariffs take effect or specific steel and aluminum articles, may be exempt from reciprocal tariffs.²

- *Global Impact*: Trump's tariffs have sparked responses from US trading partners, with experts analyzing the implications for global trade and the economy.