Did everyone underestimate Trump? Top economist admits President may have outfoxed critics on the economy
Tariffs imposed by President Donald Trump on the USA's trading countries have so far evoked sharp reactions. However, a top economist has claimed that the President and his administration may have 'outsmarted' the economists. Apollo Chief Economist Torsten Sløk has also detailed about a scenario which would benefit the world as well as churn out annual revenue worth $400 billion for taxpayers in the US. Sløk's note published ahead of Donald Trump's announcement on Sunday that the President was not planning to extend a 90-day pause on tariffs on most nations beyond July 9, when the negotiating period he set would expire, and his administration will notify countries that the trade penalties will take effect unless there are deals with the United States.
In a detailed post titled "Has Trump Outsmarted Everyone on Tariffs?", Sløk noted that the Trump administration's strategy is maybe to maintain 30 per cent tariffs on China and 10 per cent tariffs on all other countries and then give all countries 12 months to lower non-tariff barriers and open up their economies to trade.
Trump Tariffs
- A Victory For USA?
Sløk noted that extending the deadline one year would give countries and US domestic businesses time to adjust to the new world with permanently higher tariffs, and it would also result in an immediate decline in uncertainty.
This would seem like a victory for the world and yet would produce $400 billion of annual revenue for US taxpayers. Trade partners will be happy with only 10 per cent tariffs and US tax revenue will go up. Maybe the administration has outsmarted all of us, the Apollo Chief Economist noted.
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Tariff Deadline Nears
Meanwhile, President Trump on Sunday said Letters will start going out 'pretty soon" before the approaching deadline. Those letters, he said, would state, "Congratulations, we're allowing you to shop in the United States of America, you're going to pay a 25% tariff, or a 35% or a 50% or 10%."
Trump told these to Fox News Channel's "Sunday Morning Futures" during a wide-ranging interview taped Friday and broadcast Sunday.
On July 8, "Liberation Day" tariffs to take effect following the 90-day suspension period, potentially affecting imports from multiple countries. July 9 is the deadline for United States and the European Union to negotiate a deal to avert 50 per cent tariff duty on all EU imports.
So far, the twists and turns in the US President Donald Trump's tariff policies have not only rattled global financial markets but have also taken investors on a roller-coaster ride. Companies are counting the cost of the trade war that is now being estimated at more than $34 billion in lost sales and higher expenses, a Reuters analysis showed.
Trump had played down the deadline at a White House news conference Friday by noting how difficult it would be to work out separate deals with each nation. The administration had set a goal of reaching 90 trade deals in 90 days.
Negotiations continue, but 'there's 200 countries, you can't talk to all of them,' he said in the interview.
FAQs
Q1. Who is President of USA?
A1. President of USA is Donald Trump.
Q2. When is Tariff deadline?
A2. On July 8, "Liberation Day" tariffs to take effect following the 90-day suspension period, potentially affecting imports from multiple countries. July 9 is the deadline for United States and the European Union to negotiate a deal to avert 50 per cent tariff duty on all EU imports.
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