Laila Kirkpatrick, Staff Writer
On Thursday, President Trump declared that he would be rolling out a plan to increase tariffs to match the tax rates that other nations charge for their imports. This could trigger larger economic issues with the nation’s economic allies and rivals. Trump stated that this plan was made “for purposes of fairness that I will charge a reciprocal tariff.” Trump went on to say, “It’s fair to all. No other country can complain.” Trump’s administration has insisted that the new tariffs are going to equalize the ability of U.S. and foreign manufacturers to compete. However, the current law places the burden of these new laws on American consumers and businesses.
The politics of tariffs is something that could backfire for Trump if this significantly impacts inflation and causes it to increase while grinding down on growth. This possibility does make the stakes higher for President Trump. The tariff increase would be customized for each country, with one of the goals being to start new trade negotiations. However, other nations could see those tariffs and retaliate with their own tariff increases on American goods. This scenario would result in extreme uncertainty and would force Trump to find a way to reassure consumers and businesses to counteract the uncertainty the tariffs caused.
