[Since President Donald Trump won the election in November, businesses across the globe have been bracing for higher tariffs—a key day one promise the president made. Over a week into his presidency, Trump has yet to enact any new tariffs.
That could change, come 11:59 p.m. ET on Saturday—the deadline Trump set for when he said he will slap 25% tariffs on all Mexican and Canadian goods and potentially a 10% tariff on all Chinese goods. The tariffs will be imposed, Trump claims, as a way of punishing the three nations responsible for helping people enter the country illegally and supplying fentanyl consumed in the US.
Speaking to reporters from the Oval Office, Trump said he meant business, especially with his tariff threats on Mexico and Canada. But does he really?
Wilbur Ross, Trump’s former Commerce Secretary, said the threat of blanket tariffs is likely being overstated. “There probably will be exclusions, because there are some goods that just are not made here, will not be made here, and therefore, there’s no particular point putting tariffs on.”
Ross advocated for such exclusions when he advised Trump on tariff policies and says he believes most of the requested exclusions in the past would not have been legitimate. According to him, exclusions would create “a series of whack-a-moles.” Others, such as Treasury Secretary Scott Bessent, support a gradual approach, while Trump’s nominee to lead the Commerce Department, Howard Lutnick, endorses a blanket tariff approach.
Source link
