How can Trump’s mutual definitions look like?

president Donald Trump On Thursday, an executive thing imposed a mutual tariff for commercial partners in the United States, which effectively increases imports to match those who are imposed on America’s exports.

“Today’s social truth is:” today is the big: mutual definitions. “One of them told reporters at a phone conference that his executive matter begins a process that may lead to a mutual tariff within weeks of trade at home White and economic in the United States.

The Trump administration aims to complete its commercial review by April 1 and plans to target what it calls the most “terrible” issues first, including countries that have significant trade surpluses with the United States and the highest tariff rates on American goods. The president’s tariff will match the high tariff prices in other countries and aim to confront other commercial barriers such as exhausting regulations, value -added taxes, government subsidies, exchange rate policies and negotiations with some countries to reduce these barriers.

A new analysis by economists in Goldman Sachs, led by Jean Hatzius, viewed how Mutual definitions It can work and find that it is likely to increase the average tariff imposed on imports of the United States, although it can help reduce uncertainty in trade as well.

Experts say that the customs tariff can be treated in the interest points plans in the Federal Reserve, amid enlargement concerns.

“If it is applied at the level of the private product (for example, the American customs tariff for cars from the European Union will equal the same rate that the European Union applies to cars from the United States), the average rate of tariffs in the United States may increase by about 2 ( Celsius), we appreciate.

“While the mutual tariff policy poses risks, it is also possible to gradually reduce uncertainty in commercial policy once it is announced.

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Economists wrote: “President Trump’s comments indicate that he looks at this policy as a substitute for the global tariff that has reached 10 % that he discussed in the past.” If the US tariff is set to match External tariff ratesIn theory, it will make it unlikely that the American definitions will rise significantly. This may also eventually reduce the customs tariff (and in theory a decrease in American definitions as well). “

They also said that there are risks related to mutual definitions in the case of Trump administration attempts to determine equality in non -fire barriers (NTBS) in trade, which they notice “difficult to determine but may lead to a greater increase.”

Economists wrote: “The main risk is that the Trump administration can consider value -added taxes (VATS) in the account, which would raise the average rate of active tariffs by 10PP.” “However, while President Trump It has criticized the defense tax in some countries, there is no indication at this stage that the mutual tariff policy is planning to announce it will include light basins in the account. “

While the mutual tariff may be the last step in Trump’s efforts to reshape the American commercial policy, the report indicated that there are likely to be other developments with the progress of the president.

“Of course, even if President Trump looks at the mutual tariff as an alternative to the most comprehensive measures at the present time, we only enter the fourth week of a four -year presidential period, and it seems that there may be many additional tariff advertisements even if and announced a mutual tariff This week, “Economists in Goldman indicated.

Trump’s tariff warnings from commercial groups

Kevin Haysit, director National Economic CouncilAnd, the reporters told Wednesday that the mutual tariff is a completely high priority for the president and was forever. “They indicated that the discussions related to them had started with foreign commercial partners.

He said: “Our commercial partners receive more customs tariffs than we impose on them. This is something that he talked about before, and there will be a lot of procedures on them today. Until we started to conduct negotiations with other countries.”

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Hasait was asked about what he required negotiations with other countries and answered, “We used to set the basis for discussions on mutual trade.”

He added that Howard Lootnick, Trump’s candidate to be a commercial secretary, led those meetings.

Kristen Altus and Reuters contributed to Business Fox