Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
President Donald Trump is signed by the executive order after the comments on mutual tariffs during the Rose event on April 2, 2025.
Saul Lob | AFP | Gets the image
President Donald Trump led many reasons Impose steep new tariffs on US trading partners. Some justification is diverge Said economists said economists.
Trump on Wednesday announced a new 10% tariff for all imports, as well as additional leaving for major exporters including China, India, Vietnam and the European Union.
Duties, combined with others already announced earlier this year, are pushing the average effective US tariff rate with 2.3% in 2024 to approximately 24% – the highest in 125 years, according to a note on Wednesday.
Different Trump justifications for tariffs
Ever since Trump has started his second term, he promised to refocus worldwide trade, he has offered many different justifications for tariffs. Here are some of them:
- Tariffs will restore the US production. Trump has long claimed that protectionist trade policy is the only way to preserve and develop US factory jobs. Economists generally disagree. “This trading war is not an incentive to return to the US,” – founder Andre K. Winter, the founder of the company Consultant on the supply chain Hudsonvinters told CNBC. “Companies will look for other countries” with smaller tariffs and work costs before returning production to the United States, Winter said.
- A income Collected tariff importers – which transmit consumers to consumers – will help to compensate for the planned Trump’s tax reduction. According to the budget laboratory of Yale University analysisAll tariffs to date would have collected $ 2.5 trillion in ten years if they remain in place. It is expected that the Republican package package package will cost at least $ 4 trillion in ten years.
- Profit from tariffs will help pay government debt, Trump’s claim is repeated on Wednesday at the White House.
- Tariffs and tariffs will give Trump leverage to force other countries to reduce their own trade barriers to US goods.
- Tariffs can help reduce Fentanyl’s death in the US by pressing in Canada and Mexico to stop cross -trading drug trading.
- Trump says tariffs can solve what he calls the problem of the American defense base that has become “dependent on foreign opponents”.
- Tariffs can reduce Trade deficit For example, in the United States working with China, which reached about $ 295 billion in 2024. Some countries that have been hardly affected have Excess $ 18 billion in 2024.
- Tariffs will encourage the US economy. Trump and his trade advisers claim that tariffs make US buyers look for domestic products as foreign production becomes too expensive, thus growing American jobs and increasing prosperity. But economists claim that the use of tariffs to raise jobs in security areas such as steel hurts all sectors Which should buy steel for the production of their products. Purely, higher US goods costs can cost American workplace.
Why do tariffs come with “compromise”
However, there are “compromises” with tariffs, Douglas Irwin, a professor of economics at the Dartmut College and a trade historian, said at the Webinar earlier this year.
For example, the result of protectionist policy aimed at restricting foreign imports in order to increase the domestic industry is that the US does not bring much profit from tariffs, he said.
Conversely, the attempt to maximize the profit from tariffs means that the US will not limit imports, Irvin said.
Trump also broke tariffs as a way to reduce consumer prices, the result of greater US production and stronger competition.
However, economists generally disagree with this statement, at least for the prices in the short term. The average household will lose $ 2400 from the tariffs on April 2 and about $ 3800 with all tariffs in combination, Yelsky’s budget laboratory reports.
