Trump Expected to Announce Reciprocal Tariffs for Other Countries
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- in Economy
Trump Says His Tariffs Will Take Effect Wednesday
President Trump has settled on a final plan for sweeping “reciprocal” tariffs, which are expected to take effect on Wednesday after he announces the details at an afternoon Rose Garden ceremony.The White House press secretary, Karoline Leavitt, confirmed the timeline in a briefing with reporters on Tuesday, adding that Mr. Trump had been huddling with his trade team to hash out the finer points of an approach meant to end “decades of unfair trade practices.”When pressed on whether the administration was worried the tariffs could prove to be the wrong approach, Ms. Leavitt struck a confident note: “They’re not going to be wrong,” she said. “It is going to work.”The administration has been weighing several different tariff strategies in recent weeks. One option examined by the White House is a 20 percent flat tariff on all imports, which advisers have said could help raise more than $6 trillion in revenue for the U.S. government.But advisers have also discussed the idea of assigning different tariff levels to countries depending on the trade barriers those countries impose against American products. They have also said that some nations might avoid tariffs entirely by striking trade deals with the United States.Speaking to reporters in the Oval Office on Monday, Mr. Trump said the United States would be “very nice, relatively speaking,” in imposing tariffs on a vast number of countries — including U.S. allies — that he believes are unfairly inhibiting the flow of American exports.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More
- in Economy
Estimates Imply That Trump Tariffs Could Fall Heavily on Consumers
President Trump has said that the global tariffs he plans to announce this week will correct decades of unfair relationships and stop other countries from ripping off the United States. But whether the president’s so-called reciprocal tariffs will result in higher levies on other nations or lower ones remains unclear.The president has described his global tariffs as a negotiating tool that could force other countries to drop their trade barriers to American products and result in more goods flowing across borders.But the president has also talked about the tariffs as a way to raise revenue for the government and shift supply chains back to the United States. For those goals to be accomplished, relatively high tariffs would have to be imposed, and not dropped.Those conflicting goals will come to a head this week, when Mr. Trump is expected to reveal the details of his reciprocal tariff plan. Mr. Trump has taken to calling April 2 “liberation day,” saying it will represent the country breaking free of past trade relationships that he says have hurt the United States.It’s not yet clear what Mr. Trump will announce. His advisers have been weighing several different strategies and legal authorities, some of which would be more focused on raising revenue, and others that would be geared toward negotiations and opening global markets, three people familiar with the plans said. Some of the plans under consideration could take effect immediately, while others would take more time but be more insulated from legal challenges.Mr. Trump will be the ultimate decision maker, as recent tariff actions have shown. Some of his own advisers, along with the business community, have been surprised by some of the actions he’s announced in recent weeks, such as placing levies on auto parts.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More
- in Economy
Trump Science Funding Cuts May Hurt Economy, Experts Say
Since World War II, U.S. research funding has led to discoveries that fueled economic gains. Now cutbacks are seen as putting that legacy in jeopardy.President Trump’s tariffs could drive up prices. His efforts to reduce the federal work force could increase unemployment. But ask economists which of the administration’s policies they are most concerned about and many point to cuts to federal support for scientific research.The Trump administration in recent weeks has canceled or frozen billions of dollars in federal grants made to researchers through the National Institutes of Health, and has moved to sharply curtail funding for academic medical centers and other institutions. It has also, through the initiative called the Department of Government Efficiency, tried to fire hundreds of workers at the National Science Foundation, an independent federal agency. And it has revoked the visas of hundreds of foreign-born students.To economists, the policies threaten to undermine U.S. competitiveness in emerging areas like artificial intelligence, and to leave Americans as a whole poorer, less healthy and less productive in the decades ahead.“Universities are tremendously important engines of innovation,” said Sabrina Howell, a New York University professor who has studied the role of the federal government in supporting innovation. “This is really killing the goose that lays the golden egg.”Scientists have warned that the United States risks losing its status as a leader in cutting-edge research and its reputation as a magnet for top scientific minds from around the world.Already, labs across the country have begun laying off workers and canceling projects — in some cases stopping clinical trials that were already underway — and top universities including Harvard and the University of Pennsylvania have announced hiring freezes. France and other countries have begun recruiting American scientists, promising a more welcoming environment.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More
- in Economy
As Trump Squeezes the Immigrant Work Force, Employers Seek Relief
Businesses that rely on immigrants are pushing for legislation to ensure an adequate, legal flow of laborers from abroad as deportations ramp up.In recent weeks, managers of the nation’s resorts, plant nurseries, fish processors and racetracks started getting very worried.The Trump administration had yet to release a batch of H-2B visas — those available for seasonal businesses that often can’t find enough workers domestically to fulfill demand.Usually, the Department of Homeland Security releases them a few days after receiving more applications than the number of visas allowed for the second half of the year. That cap was reached on March 5, but no announcement came. Industry lobbyists got members of Congress to reach out on their behalf, put on a fund-raiser at Mar-a-Lago and sent a letter urging the administration to continue issuing the visas.“It needs to be done by April 1, otherwise we all get backed up,” said Greg Chiecko, the president of the Outdoor Amusement Business Association, which represents traveling carnival producers. “We’ve heard that they’re going to, but they’re being very deliberate in waiting a little bit.”Finally, last Wednesday, a news release announced that the visas would continue to flow, allowing businesses that banked on having them for the summer to move forward with their plans.But the anxiety reflected a deep uncertainty about where President Trump is headed on legal immigration programs, both temporary and permanent, as the administration ramps up deportations and moves to end the legal status of millions who arrived in recent years. Those actions will squeeze the labor supply that many employers depend on — and they’re using the crackdown to argue for broader channels for people to come and work.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More
- in Economy
Specter of Auto Tariffs Spurs Some Car Buyers to Rush Purchases
“Prices are going to shoot up now,” one shopper said. But some dealers said that economic concerns might be keeping people away.Ziggy Duchnowski spent Saturday morning car shopping along Northern Boulevard in Queens with two goals in mind.He wanted to find a new small car for his wife, and he hoped to strike a deal before the new tariffs that President Trump is imposing on imported cars and trucks affect prices.“The word on the street is prices are going to shoot up now,” said Mr. Duchnowski, 45, a union carpenter who voted for Mr. Trump, holding the hands of his two small children.The tariffs — 25 percent on vehicles and parts produced outside the United States — will have a broad impact on the North American auto industry. They are supposed to go into effect on April 3 and are sure to raise the prices of new cars and trucks.They will also force automakers to adjust their North American manufacturing operations and scramble to find ways to cut costs to offset the tariffs. And for now at least, they are spurring some consumers to buy vehicles before sticker prices jump.Analysts estimate that the tariffs will significantly increase the prices of new vehicles, adding a few thousand dollars for entry-level models to $10,000 or more for high-end cars and trucks. Higher prices for new vehicles are also likely to nudge used-car prices higher.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More
- in Economy
Trump’s Tariffs Leave Automakers With Tough, Expensive Choices
Carmakers are likely to face higher costs regardless of how they respond to President Trump’s 25 percent tariffs on cars and auto parts.Automakers can respond to President Trump’s new 25 percent tariffs on imported cars and parts in several ways. But all of them cost money and will lead to higher car prices, analysts say.Manufacturers can try to move production from countries like Mexico to the United States. They can try to increase the number of cars they already make here. They can stop selling imported models, especially ones that are less profitable.But whatever carmakers decide, car buyers can expect to pay more for new and used vehicles. Estimates vary widely and depend on the model, but the increase could range from around $3,000 for a car made in the United States to well over $10,000 for imported models.Those figures do not take into account additional tariffs that Mr. Trump said he would announce next week to punish countries that impose tariffs on U.S. goods. He has also said he would increase tariffs further if trading partners like Canada and the European Union raise tariffs in response to his auto tariffs, leading to an escalating tit-for-tat trade war.“It’s going to be disruptive and expensive for American consumers for several years,” said Michael Cusumano, professor of management at the MIT Sloan School of Management.Mr. Trump has long brandished tariffs. But many auto executives had hoped that his threats were a negotiating tool. Mr. Trump dashed those hopes on Wednesday when he said at the White House that the tariffs were “100 percent” permanent.Where Popular Cars (and Their Parts) Come FromHere is a selection of well-known models and where their components come from, as well as where the vehicle is ultimately assembled.
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Source: National Highway Traffic Safety AdministrationBy The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More - in Economy
With Car Tariffs, Trump Puts His Unorthodox Trade Theory to the Test
President Trump and his supporters have clashed with mainstream economists for years about the merits of tariffs. Now, the world will get to see who is right, as the president’s sweeping levies on automobiles and auto parts play out in a real-time experiment on the global economy.In Mr. Trump’s telling, tariffs have a straightforward effect: They encourage companies to move factories to the United States, creating more American jobs and prosperity.But for many economists, the effect of tariffs is anything but simple. The tariffs are likely to encourage domestic car production over the long run, they say. But they will also cause substantial collateral damage that could backfire on the president’s goals for jobs, manufacturing and the economy at large.That’s because tariffs will raise the price of cars for consumers, discouraging car purchases and slowing the economy, economists say. Tariffs could also scramble supply chains and raise costs for carmakers that depend on imported parts, reducing U.S. car production in the short term.They could also lead to retaliation on U.S. car exports, as well as other products American companies send abroad, leading to damaging global trade wars.On Thursday, global stock markets fell, with auto stocks hit hardest, as investors absorbed the scope of Mr. Trump’s plans. Shares in General Motors, which imports many of its best-selling cars and trucks from Mexico, were down roughly 7 percent in midday trading. Stellantis and Ford shares were also lower. European shares closed lower Thursday, with carmakers suffering the worst losses.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More
