As Donald Trump inched closer to the White House, he told his supporters that he would reverse China's MFN status.
Former US president and precursor to the Republican presidency, Donald Trump, expressed to his advisers his intention to impose flat tariffs of 60% on Chinese imports when he returns to power, according to the report. Washington Post Saturday.
Donald Trump has been a clear precursor to securing the Republican primaries, with all his efforts to secure the presidency once again despite his legal problems.
However, experts warned that if that were the case regarding tariffs, then this would have adverse impacts on the global economy. This would also have much worse impacts than the trade war that the former president started with China in 2018.
According to the sources cited in the Washington Post He stated that Trump discussed with his advisors “the possibility of imposing a flat 60% tariff on all Chinese imports.”
As Trump moves closer to assuming the US presidency, he has told his supporters that he would reverse China's status as the most favored nation for trade.
All countries that trade with the United States enjoy MFN status. For those who do not fall into this category, the United States can impose tariffs on their imported products.
The four-time impeached former president claimed that the United States currently has the lowest import taxes in the world as this money is crucial support for the country's budget, criticized President Joe Biden and promised a tougher stance against China.
The 77-year-old also said during the campaigns that corporate taxes would be cut to increase profits.
“The 2018-2019 trade war was immensely damaging, and this would go so far beyond that it's hard to even compare it,” Erica York, senior economist at the Tax Foundation, said in the article. Washington Post. “This threatens to disrupt and fragment global trade to a degree we have not seen in centuries.”
Joe Biden largely maintains the current duties imposed on China that were imposed by his predecessor. However, the 81-year-old president restricted Chinese access to semiconductors and other equipment.
During his presidency, Trump added approximately $8 trillion to the national debt during his first term through increased spending and tax cuts, the Post report mentioned.
“I took on communist China like no administration in history, pouring hundreds of billions of dollars directly into our Treasury when no other president had gotten even literally 10 cents from China,” the former president said before winning the election. primaries in New Hampshire. . “No one even tried. We received hundreds of billions of dollars.”
A report by the US-China Business Council, Oxford Economics, published in November, said the end of permanent normal trade with China would cost the country's economy $1.6 trillion.
Total U.S. imports from China amounted to about $550 billion in 2022, according to data from the Washington Post.
“The current average tariff rate on those goods was about 12 percent: Trump imposed 25 percent tariffs on about $150 billion of goods, and an additional 7.5 percent on another $100 billion, while the remaining imports from China were taxed at approximately 2 or 3 percent. % on average,” said York of the Tax Foundation.
He Mail reported citing experts that such a decision by the former president would provoke a global trade war.
