Washington to Present Tariff and Barrier Numbers to Trading Partners on April 2
US Treasury Secretary Scott Bessent announced on Tuesday that Washington will present a number representing tariff and other barriers to its trading partners on April 2. This move is part of the administration’s plan to unveil reciprocal levies tailored to each country.
Reciprocal Duties
President Donald Trump has promised reciprocal duties, both on US allies and competitors, from April 2. However, the administration has yet to release the exact details of the plan. Bessent explained that each country will receive a number that represents its tariffs, non-tariff barriers, currency manipulation, unfair funding, and labor suppression.
No Recession in Sight
The president’s tariff plans and the uncertainty surrounding them have shaken markets in recent weeks, fanning fears of an economic downturn. However, Bessent believes that there is no reason for a recession, citing the underlying economy’s health.
Bringing Manufacturing Back
Bessent emphasized that the Trump administration is working to bring manufacturing back to the United States, specific to "critical industries" like steel and aluminum. The government aims to take in substantial revenues through these efforts, which will help offset the government deficit.
Outbound Investment Rules
The Treasury is also working with Congress on further outbound investment rules, ensuring that the government’s outbound investment does not turn around and get used against the US.
Conclusion
The deadline for the administration’s plan is fast approaching, and it remains to be seen how countries will respond to the presented numbers. While some countries may choose to negotiate deals with the US, others may face reciprocal tariffs. As the situation unfolds, it will be crucial to monitor the effects on global trade and the economy.
FAQs
- When will the US present tariff and barrier numbers to trading partners?
April 2 - What is the purpose of the reciprocal duties?
To raise revenue, remedy trade imbalances, and pressure countries to act on US concerns - Will the economy experience a recession?
According to Bessent, there is no reason to believe so - What are the "critical industries" the administration is targeting?
Steel and aluminum, among manufacturing sectors - What is the goal of the outbound investment rules?
To ensure that the government’s outbound investment does not turn around and get used against the US