Former President Donald Trump signaled Friday that he intends to escalate trade wars with foreign countries if re-elected, a tactic economists warn could exacerbate inflation, a tactic he used during his first term. Was.
On the eve of the primary, President Trump spoke at a rally in South Carolina, telling his supporters that if he wins a second term, he will enact the “Trump Reciprocal Trade Act.”
“If China or any other country makes us pay a tariff of, say, 100, 200, or even 300 percent, and they do that, we will give them an equivalent tariff of 100, 200, or even 300 percent. We will make them pay immediately,” President Trump said to applause.
“It’s, you mess with us, and we mess with you. It’s that simple,” he added. “As tariffs on foreign countries rise, taxes on American workers and families will fall significantly.”
President Trump frequently imposed tariffs during his first term, targeting imports from China and the European Union, sparking a tit-for-tat trade war. Beijing’s tariffs on American products have hit American farmers particularly hard, forcing the government to provide aid to many farmers.
The former president has indicated he intends to rely on tariffs as well in a potential second term.
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President Trump said in an interview with Fox Business Network last August that foreign companies should automatically pay a 10% tax, noting that it would not shut down their operations and that they would have “really huge profits.” will be obtained,” he claimed.
The proposal drew pushback from President Biden and the Wall Street Journal Editorial Board, who suggested that “Americans should be prepared to pay more for all kinds of goods” under the proposal.
They pointed to a Tax Foundation analysis that found that tariffs cost American consumers $80 billion and 166,000 full-time equivalent jobs under the Trump administration.
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