Tariffs: Trump's Weapon of Economic Reshaping
US President Donald Trump intends to overhaul the nation's trade strategy using his preferred economic tool: tariffs. Since assuming office, Trump has issued numerous tariff threats, ranging from modest to significant, including past threats to impose 60% tariffs on Chinese goods and 200% duties on Mexican car imports.
As Yahoo Finance's Ben Werschkul has documented, these threats have undergone adjustments in scope and scale based on statements made by Trump or his advisors. This uncertainty has created speculation among US businesses and the country's global trading partners, including Canada, Mexico, the European Union, and China.
Tariffs also carry the potential to impact inflation, as they have the ability to raise prices. This, in turn, could influence the Federal Reserve's decisions on interest rates in the near and long term.
Trump himself has stated that these threats could materialize into policy as early as February 1. Yahoo Finance will continue to provide the latest updates and news as the situation unfolds.
Recent Developments:
* January 30, 2025 at 9:28 PM UTC: President Trump reiterates his plan to impose 25% tariffs on Mexico and Canada, while considering exemptions for oil imports.
* January 30, 2025 at 8:25 PM UTC: With Trump's self-imposed February 1 deadline approaching, markets and global leaders remain on edge. Uncertainty surrounding the tariffs has created a wait-and-see approach for officials, including Fed Chair Jerome Powell.
* January 30, 2025 at 6:51 PM UTC: Howard Lutnick, Trump's nominee for Commerce secretary, expresses his preference for broad, country-wide tariffs, which he sees as addressing economic issues such as protecting US leadership in artificial intelligence.