President Trump praised his new Commerce pact with the United Kingdom As a “maximum agreement” that will serve as a template for agreements with other nations. But some experts are having a more dim vision, noting that the United Kingdom agreement suggests that high tariffs will remain in force in the long term.
Althegh, the agreement with Great Britain offers some concessions, a 10% rate Remains in place in the imports of the United Kingdom. Trump announced that baseline tax, which serves more widely as a minimum import tax in other nations, as part of his announcement of the “Liberation Day” of April 2.
White House spokeswoman Karoline Leavitt said Friday that the president is “committed to the 10%reference rate, not only for the United Kingdom, but also for their commercial negotiations with all other countries.”
While a 10% tariff rate is lower than some import rights than Mr. Trump imposed Other nations last monthFrom a maximum of 145% for China to 11% for the Democratic Republic of the Congo, it is still much higher than the effective rate or 3% rate before the second Trump administration, according to the economic policy research center, a non -partisan policy tank.
Master Trump’s radical tariffs at 10% could offer some relief to companies and consumers in the United States that face greater costs. But it still repeats a great wind against imports, which pay the tariffs of the goods and then transmit all or most of the cost for consumers, economists say.
“Only with a slow launch of commercial agreements in the coming months, it will still have an effective greed rate that will be in the range of two digits,” said Ey Gregory chief economist to CBS Moneywatch. “What that means for companies is that they will simply pay more for the same goods that are imported from bones, and they will raise prices in customs that have little lower capacity to resist the price in height.”
That, in turn, could cause Americans to press their wallets, a serious risk since consumer spending represents approximately 70 cents of every $ 1 in economic activity. Companies that are emphasized by tariffs could delay hiring, which leads to a decline in household income growth, Daco said.
“Modest improvement”
The agreement with Great Britain is “a modest improvement on what we had yesterday, but with most of the still existing American tariffs and the new and very limited re-liberalization of the United Kingdom worse than the status quo previously Trump”, Scott Lincicome, Cato Institute.
Economic bets for commercial conversations in the United States are high, and economists raise the Chans of a prescription Due to the consequences of Trump’s commercial war. The stock market fell and The Treasury prices of the United States slide In the days immediately after the announcement of the rate of April 2 of the president, underlining Conns investors that a commercial war could torpedo economic growth.
Closed actions Modestly higher Thursday after Mr. Trump announced the new Commercial Agreement With the United Kingdom
Although Wall Street has been largely recovered since the growing optimism of investors that the Trump administration will soon reach the new commercial agreements, many Americans are souring into Trump’s policies. In Recent CBS news survey53% of respondents said they believe that the United States economy is getting worse, while only 41% approved Trump administration tariffs.
Just as the United States tries to negotiate additional trade agreements, continuous companies face significant risks, economists point out. These voice of the ongoing uncertainty about the final level and the duration of tariffs, which makes it difficult for companies that depend on trade, make plans in spending, hiring and their supply chains.
“Even if this rate is lower, this fundamental anxiety relationship with uncertainty and unpredictability” remains, “said Han-Koo Yeo, a member of the Peterson Institute for the international economy.” If this is not resolved or addressed, then I think it will recover completely. “
Even so, some experts point out that the efforts of the Trump administration to reach new trade agreements could generate some relief for investors and companies, as long as there is growing clarity about where tariff policies could resolve.
“Now, at least the wheels are in motion in relation to discussions with a variety of countries, with the agreement between the United States and the United Kingdom as perhaps indicative of the fact that there was a descrof of rates and related to trade,” also with an investment strategist completely full of investment in Janey Capital Management.
The Secretary of Commerce, Howard Lutnick, told Fox Business in Thorsday that the Trump administration is “focused on large countries,” Althehegh, added that negotiations could be dragged.
“The president does not want to go fast,” Lutnick said. “Hey, make the son of the treatment we made today, where we said:” Look, this is just a victory for the United States “, and we discover how to make a victory for them.”
Key meeting with China
The United Kingdom is a fairly modest commercial partner for the United States, which represents around $ 65 billion in annual imports, or less than a tenth of China’s annual imports.
The Secretary of the Treasury, Scott Besent, and the US trade representative Jamieson Greer are scheduled to meet with Chinese negotiators this weekend in Switzerland, and Trump said he is open to reduce tariffs on nations products from their current level of 145%.
“80% of the Chinese rate seems correct!” The President written Friday morning.
But that might not be enough to cushion the United States against the highest rates, according to experts.
“Even if we had to see a continuation of the universal rate of 10% applied and a reversal of higher levels, or in the case of China, 145%, we are still talking about a rate of rates that is the highest since World War II,” Luschini said. “And so it will have an impact in some way.”
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