How can Trump's mutual tariffs look like?

President Donald Trump On Thursday, he signed an executive order to impose mutual tariffs on US business partners and effectively increase import duties to match those in US exports.

Trump wrote earlier: “Today is great: mutual tariffs.” An official told reporters in contact with the conference: “His executive order is launching a process that leads to mutual tariffs within a few weeks after the imposition of the White House trade and economic relations.

The Trump administration intends to examine its business by April 1 and intends to call what it calls “the most important issues”, including countries that call a lot of trade surplus with the United States and the highest US tariff rates. Give. The President's tariffs are in line with the higher tariff rates of other countries and aimed at dealing with other trade barriers such as heavy regulations, value added tax, government subsidies and exchange rate policies and negotiating with some countries to reduce these barriers.

A new analysis by Goldman Saxi economists led by John Hatzius to how Cross -tariffs It can work and find that they probably increase the average tariff that increases imports into the United States, though they can also help reduce trade uncertainty.

Experts say tariffs can be in the federal federal rate reduction programs.

“If the product is applied at a specific level of product (eg, US tariffs on EU cars will be equal to the same amount as the EU applies to US cars), the average weighted tariff rate of the state may be The United States can be smaller if it is applied to the country.

“While a mutual tariff policy poses risks, it may also gradually reduce the uncertainty of trade policy after the announcement.

Voters reject Trump's tariff pressure. Most of them believe that policy will harm the economy

“President Trump's remarks show that he considers the policy as an alternative to the 10-20 % global tariff he has discussed in the past,” the economists wrote. “If US tariffs are matching External tariff ratesTheoretically, it makes US tariffs more significantly higher. It may also eventually lead some business partners to reduce tariffs (and theoretically reducing US tariffs). “

They also said that if the Trump administration tries to equate non -tariff barriers (NTBS) for trade, there are risks related to mutual tariffs, which they pay attention to “quantity is difficult but can lead to further increases. Become. ”

“The main danger is that the Trump administration can consider value added tax (VAT) in the calculation, which can increase the effective tariff with 10PP,” economists wrote. “However, while President Trump In some countries, he has criticized the VAT tax, at this stage no sign that the mutual tariff policy he intends to declare includes the value added tax in this calculation. “

While mutual tariffs may be the last step in Trump's efforts to transform US trade policy, the report points out that there will be more developments as the president's term progress.

“Of course, even if President Trump sees mutual tariffs as a replacement for widespread measures right now, we only enter in the fourth week of a four -year presidency, and it seems even a lot of There are other tariffs, and he announced the mutual tariffs this week, “Goldman's economists pointed out.

Trump Tariffs

Kevin Host, Manager National Economic Council“Mutual tariffs are highly prioritized for the President and have been forever,” and said that discussion with foreign business partners has begun.

“Our business partners are paying us more than we charge them,” he said.

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The host was asked what the negotiations with other countries include and responded, “We have only put the ground for discussion of mutual trade.”

He added that Howard Lutnik, the Trump nominee as the secretary of the business, led the meetings.

FOX BUSINESS 'Kristen Altus and Reuters were involved in this report