I’m worried about clearing import duties
That’s what you need to know when Trump’s drastic tariffs arrive.
Financial markets have been rattling for weeks under imminent tariff tensions, Trump administration officials say. But some experts have warned that stocks may not find bailouts when President Donald Trump reveals details, some experts say.
Treasury Secretary Scott Bessent spoke on Fox News on Monday, saying Trump will announce his plans at 3pm on Wednesday, and will announce tariffs in combination with tax credits and corporate investments.
Trump, Bescent and other executives have rejected many economists’ warnings that tariffs could raise prices and cause the country to fall into a recession, instead focusing on hundreds of millions of dollars in new domestic investment projects to avoid import taxes.
“We want to bring capital, employment and factories to the US in our oval offices of the country and the business,” Bescent said.
In his social media post, Trump lists several major investment plans from large foreign and domestic companies, calling them “beautiful things to see.”
On Monday, US stocks temporarily cratered before closing out the day’s mixed results. However, in March, the S&P 500 and NASDAQ recorded their biggest monthly decline in more than two years. Jason Draho, head of Asset Allocation Americas at UBS Global Wealth Management, said Trump’s announcement on Wednesday might not settle the market.
“As much as investors want it, this is unlikely to put an end to tariff uncertainty,” Doraho said. “Uncertainty and market volatility could remain high in the near future as investors readjust their outlook after these events.”
Trump wants to promote more manufacturing in the US with new tariffs targeting foreign automobile imports, but defining American-made cars is not easy. As reported previously by USA Today, more than half of new stock vehicles have been collected in Mexico, around 19% at the US final rally, with 4.2% and 1.4% in China.
“In fact, no cars are 100% made in the US. There are parts sourced from the US,” said Joseph Yong, consumer insight analyst at Edmunds. “If tariffs are implemented and implemented at face value, it would be a huge deal for the automotive industry worldwide.” Learn more here.
– Bailey Schultz
White House spokesman Caroline Leavitt said Trump is not interested in selling the stock market ahead of the tariff announcement.
“The president has always said that the stock market is a snapshot of the moment and that he is doing his best for Main Street,” Leavitt said. “Wall Street will do well in this administration, just like it did in the first administration.”
She refused to say how many countries will face tariffs in Trump’s announcement Wednesday, but said they would offset the unfair treatment they have faced for decades.
She cited Japan’s 700% tariffs to US America, citing 100% tariffs in India on US agricultural products and about 300% tariffs in Canada on US butter and cheese. India has offered to reduce tariffs to appease Trump.
“Over the past decades, we’ve gone out of business or removed jobs,” Leavitt said. “The time has come for reciprocity.”
-Bart Jansen
Customs duties are primarily imposed on imports. This is usually to protect the industries that collect domestic industries. Customs duties make imports more expensive, so local products are cheaper in comparison. Tariffs can also provide income that can be used to support local industries, fund public programs, or cover government spending.
It can also serve as a negotiation tool to win concessions from trading partners.
“While tariffs may seem to punish foreign producers by reducing their products and services to be competitive, the reality is that US consumers and businesses ultimately carry costs.”
Ej Antoni, a fiscal economist and senior fellow at the Conservative Committee, unleashing prosperity, said earlier this month that Fox News’ opinion shows that economic history is at least partially paid by exporters as well as customers.
Contribution: Reuters
