Trump's tariff talks spark investor anxiety over China policy
CNBC reports, citing information from Wall Street, that Donald Trump would quickly implement his proposals to raise tariffs if he wins the election.
Robert Lighthizer, Trump's longtime trade advisor, is meeting with investment firms and tells them that Trump could announce a 60% tariff on Chinese products shortly after taking office, analysts from Piper Sandler noted in a memo to clients, described by CNBC.
Does Trump want to raise tariffs for China as soon as possible?
Analysts noted that "Trump campaign stressed to CNBC that Trump’s tariff ideas should be viewed in concert with his broader plans", potentially reaching historically high levels. According to the memo, the former U.S. president "has the will and the way to follow through on his commitment to impose 60% tariffs on Chinese imports." They believe that the hike would be introduced faster than in the first term.
Additionally, he would impose a general 10% tariff on other countries "by force"—even if it means such a decision would be challenged in court. According to experts from Piper Sandler, if this happens, Trump could "flood" the market with further targeted tariff increases.
Trump's spokesperson, when asked about these reports, did not deny that Lighthizer was meeting with investors. However, she emphasized that "no policy should be deemed official unless it comes from President Trump directly."
Robert Lighthizer is Trump's economic advisor, particularly in terms of trade. He helped shape the billionaire's trade policy during the first term. According to CNBC, Lighthizer is considered a likely candidate for several positions in the administration if Trump wins the election, including Secretary of Commerce or Secretary of the Treasury. Lighthizer is, among other roles, a director at Trump Media.
Trump threatened with 100% tariffs
Recently, Donald Trump even threatened 100% tariffs on countries that abandon dollar trading. The presidential candidate also claims that the European Union "exploits" the USA in trade because it sells millions of cars there but does not, for example, buy agricultural products.
According to CNBC, many economists and tax specialists in the USA warn that the planned tariff increase will also cause price hikes and lower U.S. GDP, as well as affect employment. Democratic candidate Kamala Harris, during one of her speeches, quoted analyses suggesting that tariff increases could mean a tax increase of almost $4,000 (CAD 5,500) for an average American family.
