In an interview with CNBC on Thursday, the US Secretary of Commerce, Howard Lutnick, said that most countries will actually examine their commercial policies after the reciprocal tariff ads of the president of the United States, Donald Trump, according to Reuters.
“We are talking to all the main markening countries, American products will have to be sold there,” Lutnick added and said countries will need to change their rules to allow the entry of US agricultural products.
Market reaction
The US dollar (USD) is still under a strong sales pressure after these comments. At the time of publication, the USD index was lowering around 2% in the day to 101.65.
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
