Washington, April 2, 2025. – The president of the United States Donald Trump announced the introduction of fresh tariffs on imported goods, which is another step in the implementation of his economical vision. The tariff package, named by the administration "great hit", is expected to enter into force in the coming days and covers a wide scope of products – from vehicles and car parts to semiconductors and pharmaceuticals. What are the real assumptions of this policy and what can it mean for the US economy and their trading partners?
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What do we know about the fresh duties?
As announced by the White House, from April 3 full assembled vehicles imported into the US will be placed under a duty, and from May the tariffs will besides include key automotive components. The plans besides include taxes on semiconductors, medicines, food products and copper. In March, duties were already introduced on selected commodities from China, and the current wave is expected to extend this scope. Trump besides announced alleged common duties, adapted to the rates imposed on US products by another trading partners.
This information coincides with media reports, including “Rzeczpospolita” and “Money.pl”, which have been reporting preparations for Trump’s protectionist policy since November 2024. This is besides confirmed by his run rhetoric, in which he stressed the request to defend the American manufacture and reduce the trade deficit.
Administrative objectives
Trump presents the 3 main principles of its strategy. First,, wants to stimulate national production by encouraging companies to decision factories to the US – taxation relief and administrative simplification are to be supported. Second, customs are to make gross to the national budget which will finance the planned taxation reductions, including the exemption from taxation of tips and social safety income. Third, tariffs are to service as a negotiating tool in global relations, replacing sanctions that, according to Trump, weaken the dollar position.
These objectives are reflected in the statements of the president's advisors specified as Peter Navarro, who in January 2025 at CNBC argued that duties could cover the cost of taxation reductions estimated at $4.6 trillion over a decade.
Scale and reality of plans
The fresh tariffs have already affected Canada, Mexico and China – countries accounting for around 40% of American freight trade. The suspension of any customs duties towards US neighbours was the consequence of their concessions on migration and the fight against drug trafficking, which confirms Trump's flexibility of approach. The president has broad powers to impose duties under national safety and economical interests laws, making these actions legally feasible without Congress' approval.
According to an analysis by Yale University, current and planned tariffs can increase the average level of customs in the US to almost 10% — this would be the highest level since 1943. The White home underlines that these changes are historical and form 1 of the pillars of the fresh economical strategy.
Potential effects
Economists estimation that fresh tariffs can increase the cost of surviving of Americans. Households can lose up to $2,000 a year due to increased prices of imported goods. Companies specified as Walmart or mark already signal possible increases, although any abroad companies are considering lowering prices or transferring production to the US, which could partially implement Trump's vision.
Internationally there is simply a hazard of escalation of commercial tensions. China, Canada and Mexico have announced retaliation, which could lead to a wider customs war. Historical data, including the effects of the 1930 Smoot-Hawley Act, propose that protectionism can origin economical slowdown, although the current geopolitical context differs from the realities of nearly a century ago.
Assessment and outlook
Trump's customs policy is simply a continuation of the trend started in his first term, erstwhile Chinese goods were charged tariffs worth $380 billion. However, the current actions are more ambitious and cover a wider scope of trading partners. Although the administration emphasizes the benefits for the American economy, experts stay divided – protectionism can strengthen any sectors, but besides carries the hazard of inflation and global repercussions.
Market responses and negotiations with trading partners will be crucial in the coming months. fresh duties are not only an economical decision, but besides a political decision that can redefine the function of the US in global trade.
DF, thefad.pl Source: Bloomberg, Reuters, CNBC, Yale University Budget Lab, Center for strategical & global Studies, “Rzeczpospolita”, Money.pl
