Trump eyes massive tariff hikes on China after election win
Donald Trump would quickly implement his proposals to raise tariffs if he wins the election, CNBC reports, citing information from Wall Street.
Robert Lighthizer, Trump's longtime trade advisor, is meeting with investment firms and has reportedly told them that Trump could announce a 60% tariff on Chinese products shortly after taking office, according to analysts from Piper Sandler, as noted in a memo to clients described by CNBC.
Does Trump want to raise tariffs for China as soon as possible?
Analysts have noted that "Trump campaign stressed to CNBC that Trump’s tariff ideas should be viewed in concert with his broader plans" and could potentially reach historically high levels. According to the memo, the former U.S. president "has the will and the way to follow through on his commitment to impose 60% tariffs on Chinese imports." They believe this increase would be implemented more swiftly than during his first term.
Additionally, he reportedly plans to impose a general 10% tariff on other countries "by force," even if this means such a decision would be challenged in court. Experts from Piper Sandler suggest that if this occurs, Trump could "flood" the market with further targeted tariff increases.
A Trump spokesperson, when asked about these reports, did not deny that Lighthizer was meeting with investors. However, she emphasized that "no policy should be deemed official unless it comes from President Trump directly."
During his first term, Robert Lighthizer served as Trump's economic advisor, particularly in trade, and helped shape the billionaire’s trade policy. According to CNBC, Lighthizer is seen as a likely candidate for several positions in the administration if Trump wins the election, including Secretary of Commerce or Secretary of the Treasury. Lighthizer is, among other roles, a director at Trump Media.
Trump threatened with 100% tariffs
Recently, Donald Trump even threatened 100% tariffs on countries that abandoned trading in dollars. The presidential candidate also claims that the European Union "exploits" the U.S. in trade, noting that it sells millions of cars there but does not, for example, buy agricultural products.
According to CNBC, many economists and tax specialists in the U.S. warn that the planned tariff increase could also lead to price hikes, lower U.S. GDP, and affect employment. Democratic candidate Kamala Harris, in one of her speeches, cited analyses suggesting that tariff increases could mean a tax increase of almost $4,000 for an average American family.
