Tariffs: Trump's Tool for Revamping US Trade Policy
US President Donald Trump is employing tariffs as a key instrument in reshaping the nation's trade strategy. Since his initial threat to impose a 60% tariff on Chinese goods and a 200% tax on Mexican car imports, Trump has continued to issue both minor and major tariff warnings.
These threats have often fluctuated in scope and extent, depending on statements made by Trump or his advisors. This volatility has left American businesses and international trading partners, including Canada, Mexico, the EU, and China, in a state of uncertainty about future actions.
Tariffs may also impact inflation by potentially increasing consumer prices. This, in turn, could influence the Federal Reserve's decisions on interest rates in the upcoming months and years.
In a statement on Thursday, Trump indicated that these threats could materialize into policy as early as Saturday, February 1st. Yahoo Finance will provide live updates on the developments leading up to and following any policy decisions.
Latest Updates:
January 30, 2025, 9:28 PM UTC: Trump reiterates the possibility of imposing 25% tariffs on Mexico and Canada, potentially excluding oil imports.
January 30, 2025, 8:25 PM UTC: Markets and world leaders remain on edge ahead of Trump's self-imposed February 1st deadline for initial tariffs on Canada, Mexico, and China.
January 30, 2025, 6:51 PM UTC: Trump's nominee for Commerce Secretary, Howard Lutnick, expresses support for "across the board" tariffs, arguing they address various economic concerns, including protecting American leadership in artificial intelligence.