High tariffs are expected to remain a core feature of Donald Trump's trade policy even after new trade agreements are reached, according to several current and former advisers who spoke with Reuters.
Despite internal differences over the theory behind tariffs, most advisers agree the U.S. will emerge from ongoing trade negotiations with elevated duties on imports.
Trump’s recent imposition of tariffs last month has roiled global markets, angered trade partners, and contributed to a slowdown in the world economy. The U.S. economy contracted in the first quarter of 2025—the first time since 2022—as trade weighed heavily on growth. Opinion polls show growing voter concern over Trump’s tariff strategy and overall economic management.
Stephen Miran, chair of the Council of Economic Advisers, told Reuters that Trump is redefining U.S. trade strategy and argued that volatility in markets and data is temporary. He supported the idea of an “optimal tariff rate” that could boost both tax revenue and economic performance. While Miran previously published a paper suggesting a 20% tariff rate could benefit the U.S., he clarified the paper predated his current role and does not represent administration policy.
Peter Navarro, Trump’s senior counselor for trade and manufacturing, also backed the concept of an optimal tariff. He argued tariffs could correct trade imbalances and bring back jobs, calling current efforts “the last chance” to reverse decades of unfair trade.
On Friday, Trump signaled further escalation, saying tariffs of 80% on Chinese goods “seems right,” just ahead of planned trade talks with Beijing. A limited bilateral deal with the UK announced Thursday kept a 10% tariff on British exports, while easing restrictions on cars and agriculture.
However, economists remain deeply divided. Nouriel Roubini, known for predicting the 2008 financial crisis, said under a baseline scenario with average tariffs at 10%—and 60% on China—inflation could rise to 4%, potentially triggering a recession by year’s end. He warned that higher tariffs could result in a deeper global downturn.
Former Treasury official Lawrence Summers also cautioned that broad-based tariffs could lead to a recession, noting there may be limited cases for targeted tariffs but not for sweeping restrictions.
Trump’s aggressive trade stance—long a feature of his political identity—has become more potent in his second term. According to former Commerce Secretary Wilbur Ross, the administration has discovered extensive executive powers to impose tariffs unilaterally. Trump now wields greater control over Congress and the Republican Party, giving him freer rein to link tariffs to issues such as national security and fentanyl trafficking.
Estonian Defense Minister Hanno Pevkur warns that Russia will likely shift its forces after the Ukraine war, posing a greater threat to NATO. He emphasizes Estonia's strong preparedness, including increased defense spending and rapid mobilization.
The House Budget Committee passed a key tax and immigration bill late Sunday, overcoming opposition from fiscal conservatives. The bill, central to President Trump’s agenda, now moves to the full House, where GOP leaders face challenges balancing demands from both hard-liners and moderates.
As thousands of residents return to war-scarred neighborhoods in Khartoum, they are encountering a deadly new threat — unexploded munitions littering homes, schools, and streets — a grim legacy of Sudan’s ongoing civil war that de-mining teams say they are woefully under-resourced to address.
The Tazhen border checkpoint on the Kazakhstan–Uzbekistan border will remain closed for an additional four months, until September 1, 2025, according to Kazakhstan’s State Revenue Committee (KDG) of the Ministry of Finance.
U.S. Vice President JD Vance and Secretary of State Marco Rubio met with Pope Leo XIV at the Vatican on Monday, signaling a potential reset in relations between the Trump administration and the Holy See, with a renewed focus on global peacemaking.
Iran will continue to enrich uranium regardless of whether a new nuclear agreement is reached with the United States, Iranian Foreign Minister Abbas Araghchi said on Monday in a statement on social media platform X.
Finland has been selected as one of the countries implementing European Union measures to supply Ukraine with defence materials, using funds from frozen Russian assets.
Estonian Defense Minister Hanno Pevkur warns that Russia will likely shift its forces after the Ukraine war, posing a greater threat to NATO. He emphasizes Estonia's strong preparedness, including increased defense spending and rapid mobilization.
Kazakhstan is taking concrete steps toward the development of its first nuclear power plant, with the country now in the pre-project phase, according to Rinat Okasov, Deputy Director General of Kazakhstan Nuclear Power Plants LLP (KAEŞ).
The House Budget Committee passed a key tax and immigration bill late Sunday, overcoming opposition from fiscal conservatives. The bill, central to President Trump’s agenda, now moves to the full House, where GOP leaders face challenges balancing demands from both hard-liners and moderates.
Ukrainian President Volodymyr Zelenskyy met Turkish President Recep Tayyip Erdogan in Ankara on May 15, with discussions reportedly focusing on upcoming peace talks between Ukrainian and Russian delegates in Istanbul.
Israeli Prime Minister Benjamin Netanyahu said the war in Gaza will not stop until Hamas is destroyed, following the release of US-Israeli soldier Edan Alexander.
Qatar signed a landmark agreement with U.S. aerospace giant Boeing on Wednesday to acquire 160 aircraft for Qatar Airways, a deal valued at $200 billion. The signing took place in Doha during the visit of U.S. President Donald Trump.
Ukrainian and Russian delegations meet behind closed doors at Istanbul’s Dolmabahçe Palace at 10:00 local time today to explore security guarantees, territorial integrity and a possible ceasefire.
EU approves 17th Russia sanctions, blacklisting almost 200 shadow‑fleet ships, 30 evasion firms and 75 defence figures, banning missile chemicals and arming Brussels to strike Kremlin hybrid and operations.
The World Bank stands as one of the most influential international financial institutions, shaping economic development across continents through financial support, technical assistance, and policy guidance.
Beginning June 30, 2025, Russia will implement a new digital pre-registration system for foreign nationals entering the country under a visa-free regime, according to updated government regulations.
Finland has been selected as one of the countries implementing European Union measures to supply Ukraine with defence materials, using funds from frozen Russian assets.
Estonian Defense Minister Hanno Pevkur warns that Russia will likely shift its forces after the Ukraine war, posing a greater threat to NATO. He emphasizes Estonia's strong preparedness, including increased defense spending and rapid mobilization.
The House Budget Committee passed a key tax and immigration bill late Sunday, overcoming opposition from fiscal conservatives. The bill, central to President Trump’s agenda, now moves to the full House, where GOP leaders face challenges balancing demands from both hard-liners and moderates.
Iran will continue to enrich uranium regardless of whether a new nuclear agreement is reached with the United States, Iranian Foreign Minister Abbas Araghchi said on Monday in a statement on social media platform X.
Finland has been selected as one of the countries implementing European Union measures to supply Ukraine with defence materials, using funds from frozen Russian assets.
Estonian Defense Minister Hanno Pevkur warns that Russia will likely shift its forces after the Ukraine war, posing a greater threat to NATO. He emphasizes Estonia's strong preparedness, including increased defense spending and rapid mobilization.
Kazakhstan is taking concrete steps toward the development of its first nuclear power plant, with the country now in the pre-project phase, according to Rinat Okasov, Deputy Director General of Kazakhstan Nuclear Power Plants LLP (KAEŞ).
The House Budget Committee passed a key tax and immigration bill late Sunday, overcoming opposition from fiscal conservatives. The bill, central to President Trump’s agenda, now moves to the full House, where GOP leaders face challenges balancing demands from both hard-liners and moderates.
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