Trump pushes for universal tariffs 'much bigger' than 2.5%

Published 28/01/2025, 04:28
© Reuters

Investing.com-- U.S. President Donald Trump has emphasized his intention to implement universal tariffs on U.S. imports, dismissing the notion of a modest 2.5% rate.

"I have it in my mind what it’s going to be but I won't be setting it yet, but it’ll be enough to protect our country,” Trump said while speaking to reporters on Monday night.

Treasury Secretary Scott Bessent had proposed initiating universal tariffs at 2.5%, with plans for gradual increases. However, President Trump has expressed preference for a rate “much bigger” than 2.5%, aiming to address trade imbalances and encourage the repatriation of manufacturing jobs.

The administration's "America First Trade Policy" seeks to reduce trade deficits and counter perceived unfair practices by imposing tariffs on imports from countries such as Canada, Mexico, China, and European nations.

Notably, there is a proposal to implement a 25% tariff on imports from Canada and Mexico starting February 1, with potential additional tariffs on Chinese goods.

Economists caution that such tariffs could lead to increased costs for American consumers, as importers may pass these expenses down the supply chain.

While Bessent's gradual approach seeks to mitigate immediate economic disruptions, President Trump's preference for higher initial tariffs underscores his commitment to the "America First" agenda.

The administration has yet to finalize its tariff strategy, leaving room for further deliberation and potential adjustments based on economic assessments and diplomatic considerations.

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