Larry Kudlow: Market praises Trump’s mutual tariffs
today, President Donald Trump expanded to him Fair and mutual trade policy It aims to create a level playing field for American workers and businesses, and hopes to address many unfair trading practices around the world targeting the US.
He uses simple metrics: If you tax us, we tax you. But if you lower our taxes on us, we will be happy to lower our taxes on you.
In fact, President Trump sees this as a path to free trade.
And taxes are really customs duties. So, one place where the president singled out is the European Union, a value-added tax (VAT) of nearly 20%, and yes, it acts as a tariff.
Furthermore, they have far higher tariffs than ours overall. With that score, President Trump picked out 10% of European car rates. This is four times the 2.5% of the US. It is above 20% VAT. Of course, that is patently unfair.
And there are plenty of examples from across the country. In India, we have six times the tariff rates we do, three times in Mexico, almost five times in China, and six in Brazil.
President Donald Trump signs a new executive order on mutual tariffs from an oval office.
The global trading system is broken Over 25 years. And most countries use the US to act as a barrier to trading to the US.
There is no international court to amend it. The World Trade Organization is bust and is corrupted in bed with China.
Therefore, President Trump will try to correct this by applying mutual tariff benchmarks. It seems to be a fairly simple metric.
At this point, we don’t know exactly how far the policy will go. Also, I don’t know how much customs revenue will increase. These are important questions, but they are unanswered.
In today’s presser, Trump used a very mild and modest approach.
He really wasn’t banging anyone, and he said, how the industrial centre and our entire economy grew as a result of his equal playing field goals based on his interactions. I focused on most of his comments on whether he would be more productive.
Ezi Antoni, economist at the Heritage Foundation, former World Bank President David Malpus and Senator Kevin Kramer, Rs.D. is overwhelmed by President Donald Trump’s mutual trade policy regarding “Kudrow.”
The stock market rose nearly 400 points on the news. No action will take place until April 1st after a review led by Commerce Secretary Howard Luttonick.
Reporters are persistently nagging President Trump Regarding inflation tariffs. But they’re wrong.
Foreign exporters are at the greatest burden as they are forced to lower prices to sell in the US. Furthermore, exporter currencies will fall, and the US dollar will rise.
And if the European Union or anyone lowers tariffs, consumer prices will drop.
It’s all counter inflation.
That said, I strongly support trade reciprocity. It is a noble mission.
Next, I want the President to start talking about tax cuts, employment, middle class wages and rapid economic growth.
Don’t forget the growth message.