In a recent interview with Time, President Donald Trump reaffirmed his stance on high tariffs, stating that they could remain in place for the foreseeable future, even suggesting that a “total victory” would mean import taxes as high as 50% within a year.
Trump’s trade policies have resulted in historic tariffs on a wide range of imports, including a 10% tariff on virtually all goods entering the U.S., a 25% levy on steel, aluminum, and autos, and a staggering 145% tariff on many Chinese goods.
These tariffs have led to a significant slowdown in trade, with experts warning of rising costs for consumers and strained business operations. The U.S. effective tariff rate is now at 22.8%, the highest among developed countries, according to Fitch Ratings. As a result, American businesses are grappling with increased costs, and trade with countries like China has essentially ground to a halt. The tariffs have led to the depletion of warehoused goods, leaving businesses facing tough decisions: absorb higher import costs or stop selling certain products.
Despite the growing uncertainty, Trump maintains that these high tariffs will ultimately benefit the U.S. economy. In the Time interview, he argued that tariffs would encourage businesses to reshore production, bringing jobs and investment back to the U.S. However, critics point out the significant challenges in reshoring manufacturing, including the need to train American workers for factory jobs and the high costs of building factories in the U.S.
The tariffs have already had a noticeable impact on American consumers. Economists predict that the continued high tariffs will lead to higher prices across the board, as costs are passed down the supply chain. The Federal Reserve’s Beige Book recently noted that businesses are halting hiring, with "uncertainty" emerging as a major theme. Consumer sentiment has reached near-record lows, and many companies have downgraded their sales and profit projections due to reduced consumer spending.
Trump, however, remains optimistic. He claimed that his administration is in the process of negotiating hundreds of trade deals that could further improve the U.S.'s position in global trade. He promised to announce these deals in the coming weeks, emphasizing that the U.S. is now receiving billions of dollars daily in tariff revenues, despite the fact that tariffs are paid by American importers, not the target countries.
Despite recent market volatility and concerns about the economic impact of the tariffs, Trump continues to defend his trade strategy, insisting that the U.S. will benefit in the long run. However, the ongoing trade war and its effects on the global economy suggest that the path to “total victory” may come at a significant cost for American consumers and businesses.
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U.S. President Donald Trump will extend the deadline for TikTok's U.S. divestment for a third time, giving 90 more days to finalize a sale, the White House confirmed.
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South Korea, the U.S., and Japan held their first joint air drills since President Lee Jae Myung took office, signalling security cooperation even as Seoul seeks renewed dialogue with North Korea.
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Start your day informed with AnewZ Morning Brief: here are the top news stories for June 17th, covering the latest developments you need to know.
The Israeli military has issued an evacuation advisory for Iranian civilians living near weapons production sites and associated infrastructure within Iran. The message was shared on the social media platform X in both Arabic and Farsi by an official military spokesperson.
A new rail agreement between Pasifik Eurasia and a China Railway subsidiary is set to strengthen the Middle Corridor trade route, offering a faster and cheaper alternative to shipments via Russia.
U.S. President Donald Trump will extend the deadline for TikTok's U.S. divestment for a third time, giving 90 more days to finalize a sale, the White House confirmed.
U.S. President Donald Trump said he told Israeli Prime Minister Benjamin Netanyahu to "keep going," but did not indicate the United States would provide Israel with any additional support beyond what has already been supplied.
South Korea, the U.S., and Japan held their first joint air drills since President Lee Jae Myung took office, signalling security cooperation even as Seoul seeks renewed dialogue with North Korea.
The French city of Lyon has introduced new restrictions on car traffic in its historic centre as part of a broader plan to reduce air pollution and prioritize sustainable urban living.
The United Nations Conference on Trade and Development agency (UNCTAD) faces deep staffing cuts amid a global funding crisis, raising concerns about its ability to support developing nations navigating economic shocks like U.S. tariffs.
U.S. President Donald Trump will extend the deadline for TikTok's U.S. divestment for a third time, giving 90 more days to finalize a sale, the White House confirmed.
U.S. President Donald Trump said he told Israeli Prime Minister Benjamin Netanyahu to "keep going," but did not indicate the United States would provide Israel with any additional support beyond what has already been supplied.
U.S. President Donald Trump is warning that the 25% tariffs on British steel imports may remain unless the UK provides specific assurances about the Indian-owned Tata Steel plant at Port Talbot, amid ongoing trade negotiations following a partial G7 agreement.
South Korea, the U.S., and Japan held their first joint air drills since President Lee Jae Myung took office, signalling security cooperation even as Seoul seeks renewed dialogue with North Korea.
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