President Trump's Proposed Tariff Policy
President Donald Trump intends to reshape US trade policy through tariffs, a tool he favors for economic policy. Before and after his inauguration, Trump has issued numerous tariff threats. Some are minor, while others are substantial, such as his earlier warnings to impose a 60% tariff on Chinese goods or a 200% tax on Mexican car imports.
As Yahoo Finance's Ben Werschkul has observed, the scope and magnitude of these threats have evolved over time, depending on whether Trump or his advisors are speaking. This unpredictability has left US businesses and the country's international trading partners, including Canada, Mexico, the EU, and China, unsure of what to anticipate.
Tariffs may also have inflationary impacts, potentially increasing consumer prices. This, in turn, could influence the Federal Reserve's decisions on interest rates in the coming months and years.
Trump has stated that these threats could become policy as early as February 1, which he reiterated at the White House on Thursday. Yahoo Finance will provide ongoing coverage of these developments and their implications.
Latest Updates
January 30, 2025 at 9:28 PM UTC
* Trump reiterates the possibility of imposing 25% tariffs on Mexico and Canada, but expresses uncertainty about excluding oil imports.
January 30, 2025 at 8:25 PM UTC
* As Trump's self-imposed February 1 deadline for implementing tariffs on Canada, Mexico, and China approaches, markets and global leaders are on high alert.
* Ambiguous statements from the president and his nominee for Commerce Secretary have further heightened uncertainty.
* Some experts suggest that the uncertainty is already influencing business decisions.
January 30, 2025 at 6:51 PM UTC
* Trump's nominee for Commerce Secretary, Howard Lutnick, expresses preference for "across the board" tariffs, suggesting they could address various economic concerns.
* Lutnick also links tariffs to AI export controls, arguing that controls without tariff support lead to a "whack-a-mole model."