The White House is gearing up to levy 20% tariffs on most imports as the US Liberation Day announced by President Donald Trump draws nearer. The POTUS insisted earlier this week that “all countries” would face reciprocal tariffs from Wednesday as he seeks to crack down on ‘unfair’ trade practices. The White House also clarified on Tuesday that these levies would go into effect immediately while auto tariffs would proceed as scheduled on April 3.
According to a report by The Washington Post, aides have drafted a proposal that would raise duties by about 20% for nearly every country from tomorrow. The Trump administration anticipates the new duties could raise more than $6 trillion in revenue that could be sent on to Americans as a rebate.
Several other options are also under consideration and there remains a possibility that the 20% tax might not actually come to pass. The publication quoted officials to add that another plan under consideration was a country-by-country “reciprocal” approach. A White House aide also told Reuters that any report ahead of tomorrow’s event was “mere speculation”.
Trump had heavily teased tariffs throughout February and also signed a memorandum ordering the creation of a ‘fair and reciprocal plan’ for US trade relationships. Trump later insisted that value added taxes (or VAT) levied on goods during each stage of production would also be considered tariffs under the plan. The date of the announcement was later pushed back by a day to April 2 as the President “didn’t want [it] to be April Fool’s Day because then nobody would believe what I said”.
Meanwhile economists warn that hefty tariffs would raise prices at home and abroad and hammer the global economy. According to reports citing the Yale University Budget Lab, a 20% tariff on top of those already imposed would cost the average US household at least $3,400.
(With inputs from agencies)