#TariffsPause Rates: Our Opinion

In this post, we express our view on the import taxation policy promoted by the Trump administration.

Historically, no country has developed its industry solely through generalized tariffs. When applied strategically and temporarily, they can be useful — as the U.S. has done, being traditionally protectionist.

However, today the U.S. cannot produce everything it consumes. Indiscriminate taxation can harm sectors that depend on external inputs, such as Madagascar vanilla, and exacerbate logistical problems, as American infrastructure is lagging compared to that of China.

Moreover, American industries need imported products: without them, they would face shutdowns, increased costs to consumers, or the need for layoffs, which could generate significant internal pressure.

We conclude that the strategy seems unsustainable, both economically and politically, as a retreat on tariffs could be seen as a sign of weakness.

And you, what do you think of this strategy? Leave your comment!