What are Trump’s Tariffs Supposed to Accomplish? | Global News Avenue

The White House believes that tariffs are a panacea to end fentanyl abuse, restore U.S. manufacturing, balance the federal budget and reduce the cost of borrowing, which contradicts traditional economic theory.

Howard Lutnick, Secretary of Commerce Financial market downturn The new tariffs on China have doubled to 20% as a result of the imposition of 25% tariffs on Canada and Mexico.

Lutnick said Tuesday’s import tax was to prevent fentanyl produced in China from traveling to the United States on its northern and southern borders.

“It’s a war of drugs, not a trade war,” he said in an interview. CNBC.

Lutnick dismisses inflation

The second largest tariff may be for a wider country Come April 2Trump’s deadline is an extensive assessment of U.S. trade policy. Lutnik said the tariffs would have economic goals. He objected to comments from numerous economists who warned that tariffs would Increase prices For consumers, Fees workand reduce the living standards of American families.

“This concept is just people complaining and complaining, not real,” he said.

Lutnick makes huge commitment to how tariffs reshape the U.S. economy Reduce income tax By bringing income, it will lead to lower borrowing costs in the financial market.

“We will resume production of a large number of items and make the United States a manufacturing center again,” Lutnik said. “There is likely to be a short-term price change, but in the long run, it will be completely different. It will be the biggest. The United States will have a balanced budget… The interest rate will be crushed, I mean 100 basis points, 150 basis points lower, you will be taxed on income, no tax on tips, no tax on social security. No overtime tax. ”

The targets may be in conflict with each other

Many of these goals are contradictory, experts say. For example, one of the goals is to encourage companies to produce products in the United States, but if consumers buy more American-made products than products from overseas, tariff revenue will drop.

“All of these tariffs are not consistent with each other,” Peterson International Economics think tank Chad Bown told the New York Times. “So what are the real priorities? Because you can’t all of these things happen immediately.”