Former US President and Republican frontrunner Donald Trump plans to implement a 60% flat tariff on Chinese imports if reelected, the Washington Post reported.
Trump, leading the Republican primary, aims to reclaim the presidency despite legal challenges. Experts caution against such tariff plans, predicting severe global economic repercussions, potentially exceeding the impact of the 2018 US-China trade war. As per Washington Post sources, Trump discussed a uniform 60% tariff on Chinese imports with his advisors.
Approaching a potential presidency, Trump intends to revoke China’s most favoured nation (MFN) trade status. The US grants MFN status to all its trade partners, allowing the imposition of tariffs on non-MFN countries.
Facing four indictments, Trump criticizes the US’s low import levies under President Joe Biden and proposes a tougher stance against China. The 77-year-old also advocates for reduced corporate taxes to boost earnings.
Erica York, a senior economist at the Tax Foundation, warns that such tariff policies could severely disrupt global trade, an impact unseen in centuries.
President Biden has maintained most of Trump’s tariffs on China, restricting Chinese access to semiconductors and other equipment. Trump’s policies contributed an $8 trillion increase to the national debt through spending hikes and tax cuts.
Trump, claiming unprecedented success against China, brought in substantial revenue during his term. He shared these achievements before winning the New Hampshire primary elections.
The November report by the US-China Business Council and Oxford Economics indicated that ending normal trade with China could cost the US economy $1.6 trillion.
In 2022, US imports from China totalled approximately $550 billion. The current average tariff on these imports is around 12%, with varying rates on different goods, as York from the Tax Foundation noted.
Experts cited by the Post suggest that Trump’s proposed tariffs could ignite a global trade war.
