Impending Global Trade Turmoil: Trump's Tariff Strategy

President Trump plans to impose 20% tariffs on a majority of imported goods, potentially intensifying a global trade war. This move has sparked concern among businesses, consumers, and investors. The tariffs could raise more than $6 trillion in revenue but are expected to increase costs for American households.

President Donald Trump is preparing to announce significant trade barriers, with plans for 20% tariffs on most goods imported to the United States. This move, as reported by the Washington Post, has businesses and investors worried about a growing global trade war. The tariffs are set to begin on April 2 as a 'Liberation Day,' targeting countries that impose duties on U.S. goods, with a 25% tariff on auto imports starting April 3.

Details regarding the scope and target of the new tariffs remain unclear, though the administration considers raising duties by about 20% on products from nearly every country. Anticipated revenue from these tariffs could surpass $6 trillion, potentially distributed as rebates to Americans. However, any specific reports before the official announcement are being labeled as 'mere speculation' by White House aides.

The potential tariffs come amidst tense trade relations, underscored by existing aluminum and steel tariffs, and increased duties on Chinese imports. Canada's Prime Minister Mark Carney has promised retaliatory measures that avoid disadvantaging Canadian workers. Meanwhile, critics warn Trump's tariff plan might amplify trade imbalances, contributing to inflation concerns and a declining momentum in the U.S. economy due to policy instability.

(With inputs from agencies.)