Liberation Day Tariffs
As expected, Liberation Day was about reciprocal tariffs. President Trump announced a list of tariffs that will be put on imports for countries that charge the U.S. tariffs on exports.
As you can see, it is not exactly reciprocal. China charges 67% on U.S. products but the new tariffs on Chinese products are only 34%. Still, that’s 34% more than cheap Chinese goods were before so that’s gunna hurt.
The White House also ended “duty-free de minimis treatment for low-value imports from China.” That means no more cheap things from Temu. Those items will have to be treated like other imports, tariffs and all. That’s a pretty big deal.
“For generations, countries have taken advantage of the United States,” the White House press account said on X. “No longer. President Trump is implementing reciprocal tariffs to increase our competitive edge, protect our sovereignty, and strengthen our national and economic security.”
It is embarrassing to see how unfavorable many countries are to U.S. products but is this the way to allow American companies to compete globally? Kentucky Senator Rand Paul calls this executive overreach. He says that this will amount to a tax on American families and “one person is not allowed to raise taxes—the constitution forbids it.” He also says that this will cost Republicans dearly in upcoming elections.
“On many fronts, I’m a supporter of the president,” he said. “On tariffs, I think it’s economically a fallacy to think it will help the country. Tariffs are a tax.”
Asian markets and U.S. exchanges were all down on this news.
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