#TrumpTariffs #TrumpTariffs Donald Trump's tariff policy has been a significant aspect of his economic strategy, both during his first term and potentially in his second term. Here's a breakdown of his approach
Impact of Tariffs
Economic experts predict that Trump's tariff proposals would:
- Raise costs for Americans
- Reduce the country's economic growth
- Increase federal revenue
Legal Authorities
Trump's administration has invoked various legal authorities to impose tariffs, including ¹:
- *International Emergency Economic Powers Act (IEEPA)*: To impose new tariffs on goods imports from China, Mexico, and Canada.
- *Section 301*: To investigate foreign trade practices and respond with trade measures, including import tariffs.
- *Section 232*: To investigate imports that pose a national security risk and impose tariffs or quotas.
Potential Consequences
The Peterson Institute for International Economics estimates that a 20% tariff on all imports, combined with a 60% tariff on China, would:
- Increase a typical middle-income household's costs by over $2,600 per year
- Reduce economic growth and increase prices for producers
Trump's First Term Tariffs
During his first term, Trump increased tariffs on imports of numerous products, including steel, aluminum, and goods from China. The Tax Foundation estimates that these tariffs resulted in ²:
- $80 billion worth of new taxes on Americans
- $233 billion in higher taxes collected by the US government from US consumers
Donald Trump's tariff policy has been a significant aspect of his economic strategy, both during his first term and potentially in his second term. Here's a breakdown of his approach:
Trump Tariff Strategy
Trump utilizes tariffs in three primary ways ¹:
Negotiation Tool: To put pressure on trade partners during negotiations and as a bargaining chip to secure new trade agreements, like the US-China Phase One trade deal.
*Punitive Tool*: To "punish" or "sanction" countries for unfair trading practices, including non-trade issues, and to easily escalate tariff rates.