A new wave of trade tension is brewing in Washington. US President Donald Trump is preparing to introduce large-scale new tariffs that will affect 60 countries worldwide. The relevant decision is expected to be made as early as this week, which could radically change the rules of international trade.
New Rates and Expiring Deadlines
According to sources, the administration has already prepared draft decisions, as the validity period of the current 10% tariffs expires at the end of this week. The new package of measures provides for an increase in rates ranging from 10% to 12.5% for sixty states. This decision will be the next step in the White House's trade policy.
Warnings from Within
However, anxiety is growing within the government. Officials working "behind the scenes" are actively warning the president against such a drastic step. Experts point to the high risk of economic turmoil, especially given the approaching US midterm elections. Advisors strongly recommend maintaining stability in relations with trade partners and strictly adhering to previously concluded agreements.
After conducting investigations concerning the supply of critical raw materials and parts for the aviation industry, advisors recommended that the administration choose the path of negotiations rather than the unilateral introduction of barriers. Nevertheless, the White House continues to work on other reviews that may provide the president with legal grounds for establishing even higher tariffs in the future.
Investigations and Canada
In March, Washington initiated a comprehensive investigation in accordance with Section 301 of the Trade Act of 1974, as well as a review of excess production capacity. This study covers key countries and regions whose trade activity raises questions for American regulators.
The situation with Canada deserves special attention. Donald Trump has already announced the introduction of a 50% tariff on a wide range of goods imported from the neighboring state. These new trade restrictions cover a significant portion of Canadian exports to the US. The new tariffs will not take effect immediately, but 30 days after the official announcement, which will be another stage in the escalation of relations between Washington and Ottawa.
