Transport Topics reports, President Trump and his economic advisers are signaling that the administration is intent on using tariffs as means of generating federal government revenue, not just as leverage in bilateral trade negotiations. Yesterday, in comments to reporters and a presidential social media post, they “talk[ed] up the lengthening list of tariffs that Trump has rolled out or threatened,” including the postponed imposts on goods from Canada and Mexico. Trump’s motive is to ensure congressional approval of major tax cuts by maximizing revenue receipts.
According to many experts, the president’s proposals would upend decades of US trade policy. They also come with risks of consumer price increases, an economic slowdown, and trade wars. Some economists also warn that the consequences of pursuing a long-term high-tariffs policy would actually lead to a decline in government revenue.
The New York Times, The Washington Post, BNN Bloomberg and Reuters report on recent US tariff policy developments and the anticipated consequences.