While we wait for the Trump administration to announce a new wave of tariffs this Wednesday, President Trump has taken to calling this day “America’s Liberation Day.” The proposed tariffs will not apply to all countries equally. Combined, they would raise more than $600 billion, generating one-fifth of the value of all goods imported into the United States. One of the biggest surprises in this sweeping measure is a new tax on all car imports. It has the potential to bring in $100 billion based on a $240 billion market. These tariffs are intended to protect the US economy from what the administration considers to be predatory competition. They are an enormous strategic tool when it comes to negotiating stronger, better trade terms.
These new tariffs will add more muscle to the existing measures that Washington has placed against aluminum, steel and cars. They go further, increasing tariffs on every product imported from China. Particular focus will be placed on China and Vietnam and on 10–15 other countries, as first identified through trade deficits with the United States. The White House released this fact sheet. That the US could gain almost 3 million domestic jobs by adding a just 10% tariff on all imports. President Trump has consistently emphasized that these tariffs form part of his broader strategy to stimulate job growth in the US.
The economic cost of the tariffs is in the trillions of dollars. They risk provoking retaliatory measures from other countries, such as the European Union and Canada. For now, the administration is convinced that these US tariffs are an essential step to strengthening the US economy. By correcting our trade imbalances and negotiating better agreements, the administration hopes to build prosperity here at home.