"Another Trade War?" Trump Pushes Tariffs on All Imports...Mentions 10% Rate

Former U.S. President Donald Trump could impose a new 10% tariff on virtually all imported goods if he wins the 2024 presidential election, potentially triggering a massive trade war. During his first term, Trump sparked conflicts with major countries through the so-called 'Trump tariffs,' and he is expected to make even stronger tariff policies a key pledge in his next campaign.

[Image source=AFP Yonhap News]

The Washington Post (WP) reported on the 22nd (local time) that ahead of next year's election, Trump met with economic advisers for about two hours on the evening of the 16th at a golf club in New Jersey to discuss these economic pledges. Attendees included Larry Kudlow, former chairman of the White House National Economic Council (NEC); Brooke Rollins, a policy adviser during the Trump administration; and Stephen Moore, Trump’s economic adviser.

According to anonymous sources, one of the main economic pledges discussed was the imposition of a 'universal baseline tariff' on virtually all imported goods. WP stated that "Trump described this tariff idea as creating a 'ring around the U.S. economy,'" and warned that if implemented, it could cause enormous economic turmoil surpassing the trade disputes during Trump’s first term.

The specific tariff rate has not yet been finalized. However, in a Fox Business interview the day after the meeting, Trump publicly advocated for an automatic 10% tariff on all countries, emphasizing the 10% figure.

Experts across the political spectrum warn that if such tariffs are actually implemented, they would fuel inflation across the economy and lead to a global trade war. Adam Posen, president of the Peterson Institute for International Economics (PIIE), a Washington think tank, warned that it would be a "crazy and terrible act," and that major countries worldwide would conclude they can no longer trust the U.S. as a trading partner. He added that it would deprive Americans of choices, increase household costs, and potentially cause millions to lose their jobs.

Michael Strain, an economist at the American Enterprise Institute, a center-right think tank, said that if Trump’s new tariff plan is implemented, it could have an even greater impact than the trade wars during his first term. "It would be a disaster for the U.S. economy. Consumer prices would rise, significant retaliation from other countries would follow, and costs borne by U.S. companies would increase," he said. Ultimately, thousands of U.S. companies reliant on imports and American consumers would suffer. Chris Clark, an economist at Washington State University, also predicted "significant harm to the U.S. economy," saying it would "ruin our entire production process."

Former members of the Trump administration also voiced criticism. Paul Winfree, former deputy director of the Domestic Policy Council, said, "Tariffs of that scope and scale would be a huge tax on the very people tariffs are supposed to help," and pointed out that "at a time when the Federal Reserve (Fed) is struggling to control inflation, these higher costs would be passed on to consumers." Some have also raised concerns that Trump might exercise his authority in a corrupt manner by exempting certain countries from import tariffs.

During his first term, Trump imposed tariffs on a wide range of imports including solar panels, washing machines, steel, and aluminum. In 2018, he imposed tariffs on $200 billion worth of Chinese imports, sparking a U.S.-China tariff war. WP noted that most of the trade barriers imposed on China have been expanded or maintained by the Joe Biden administration, but stated that "Trump’s universal tariff plan would be seen as a dramatic escalation of economic nationalism likely to draw even harsher criticism from other countries."

This content was produced with the assistance of AI translation services.