Trump announces declaration of economic independence with broad tariff measures
(MENAFN) In a bold move likely to reshape the landscape of global trade, US President Donald Trump on Wednesday introduced what he called a “Declaration of Economic Independence,” implementing wide-ranging reciprocal tariffs. The announcement has sparked concerns among economists who warn of inflation and potential recession in the US economy.
Trump issued an executive order levying tariffs between 10% and 50% on imports from over 180 nations. The decision, aimed at countering what the administration considers longstanding unfair trade practices, is expected to generate an estimated $700 billion in revenue.
According to the administration, this revenue will help fund tax reductions for high-income earners. However, economic experts caution that the move could lead to increased import costs, elevated prices for consumers, and a slowdown in economic growth.
Trump defended the tariffs, asserting that the United States is being “ripped off” by both allies and rivals alike. The plan is part of a broader strategy to stimulate domestic manufacturing and decrease reliance on foreign goods.
Included in the executive orders are targeted tariffs on the automotive, steel, and aluminum industries, as well as additional measures against Canada, Mexico, and China. These specific tariffs are tied to concerns over fentanyl trafficking and undocumented immigration into the US.
Trump also highlighted the nation's significant trade imbalance, criticizing countries with trade surpluses against the US. According to the Department of Commerce, US imports totaled $4.1 trillion last year, while exports lagged behind at $3.2 trillion.
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