Trump's trade plan: Will 60% China tariffs shake up global commerce?
President-elect plans huge tax on Chinese imports while targeting global trade. His multi-purpose strategy aims to fund tax-cuts boost US manufacturing and gain leverage in international deals
Donald Trump returns to the White-house with a bold-minded trade plan: slap up to 60% tariffs on Chinese goods and 20% on other imports (which could shake-up global markets)
His economic team backs the idea but most experts dont like it; they warn about price increases and slower growth. Chinese and EU officials are getting ready with counter-measures: some think its just tough talk‚ others see it as a real threat
The plan has several goals which dont always fit together. First up: using tariff money to keep Trumps tax-cuts going when they run out in 25. Then theres the push to bring factories back home — but if that works there wont be much tariff cash coming in. Last but not least: using these taxes as bargaining chips for trade deals (like he did with Japan about 4 years ago)
Here are the main ways Trump could make it happen:
- Trade Act Section 301 - fastest way to hit China
- National security rules from Section 232
- Emergency powers under IEEPA
- Old-school Smoot-Hawley Act powers
The first thing that worries me are the tariffs. We could have an economic crisis in the first six months of the administration
Congress might try to stop this plan. New Senate leader John Thure likes free trade and farm-state lawmakers remember how China hit back last time. But with Trump pushing for quick action on tax-cuts theyʼll need to move fast if they want to limit his trade powers
The whole thing reminds experts of the 1930s when big tariffs made bad times worse; global trade fell hard back then. Now everyoneʼs watching to see if history might repeat itself
