President-elect Donald J. Trump has professed a belief in the power of tariffs for decades. Now, as he prepares to take office, they are a central part of his economic plan.
Mr. Trump argues that steep tariffs on foreign goods will help benefit U.S. manufacturing and create jobs. His proposals would raise tariffs to a level not seen in generations. Many economists have warned of potentially harmful consequences from such a move, including higher costs for American households and businesses, and globally destabilizing trade wars.
Here are five crucial things to know about Mr. Trump’s sweeping trade plans.
Mr. Trump has floated several hefty tariff plans.The president-elect said Monday that he would impose tariffs on his first day back in office, targeting the United States’ three largest trading partners. In social media posts, he said he would impose a 25 percent tariff on all goods from Canada and Mexico until drugs and migrants stopped coming over the borders, and an extra 10 percent tariff on all products from China, saying that the country was shipping illegal drugs to the United States.
While campaigning for the White House, Mr. Trump offered up a running list of tariffs, including a “universal” tariff of 10 to 20 percent on most foreign products. And he has suggested removing permanent normal trading relations with China, which would result in an immediate increase in tariffs on Chinese imports.
Mr. Trump has also promoted the idea of a “reciprocal” tariff, in which the United States would match the tariff rates that other countries put on American goods. He has suggested using tariff revenue to replace income taxes.
The Biden administration has also raised tariffs on goods from China, but Mr. Trump’s plans are much larger — affecting trillions of dollars of products, rather than tens of billions.
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