Source : NEW INDIAN EXPRESS NEWS
The average US tariff could rise to nearly 25% when the tariffs are fully implemented April 9, economists estimate, higher than in more than a century, and higher than the 1930 Smoot-Hawley tariffs that are widely blamed for worsening the Great Depression.
“The president just announced the de facto separation of the US economy from the global economy,” said Mary Lovely, senior fellow at the Peterson Institute for International Relations.
“The stage is set for higher prices and slower growth over the long term.”
Commerce Secretary Howard Lutnick argued the policies will help open markets overseas for US exports. “I expect most countries to start to really examine their trade policy towards the United States of America, and stop picking on us,” he said on CNBC Thursday.
“This is the reordering of fair trade.”
Mixed feelings among Americans so far
Bob Lehmann, 73, who stopped by a Best Buy in Portland, Oregon, Wednesday opposed the tariffs. “They’re going to raise prices and cause people to pay more for daily living,” he said.
Mathew Hall, a 64-year-old paint contractor, called the tariffs a “great idea” and said potential price increases in the short term were worth it. “I believe in the long term, it’s going to be good,” he said, adding that he felt the US had been taken advantage of.
But a former trade official from Trump’s first term, speaking on condition of anonymity to talk candidly about the impact, suggested that Americans, including those who voted for Trump, may have difficulty accepting the stiff duties. Americans “have never faced tariffs like this,” the former official said on Thursday.
“The downstream impact on clothing and shoe stores, it’s going to be pretty significant. So we’ll have to see how the Trump voters view this… and how long their support for these policies goes,” he added.
On Thursday, automaker Stellantis, which owns the Jeep, Citroen and Ram brands, said it would temporarily halt production at plants in Canada and Mexico in response to Trump’s 25% tax on imported cars.
The reduced output means the company is temporarily laying off 900 workers at plants in Michigan and Indiana.
Some exporters overseas may cut their prices to offset some of the tariffs, and US retailers could eat some of the cost as well. But most economists expect much of the tariffs to bring higher prices.
SOURCE :- NEW INDIAN EXPRESS
