At a recent rally in South Carolina, former Pres Donald Trump announced his intention to reintroduce retaliatory tariffs if he secured a second term. Economists warn that this move could potentially worsen inflation.
What happened: Trump expressed his plan to implement the “Trump Reciprocal Trade Act” if re-elected, The Hill reported.
The former president said: “If China or any other country made us pay a tariff of, say, 100 [percent]or 200 [percent]or even 300 percent, and they do, we will make them pay an identical reciprocal rate of 100 [percent] or 200 [percent] or 300% immediately back.
The policy proposed by Trump, which he described as “you screw us and we screw you”, was greeted with applause from his supporters. He also added that with increased foreign tariffs, taxes on American workers and families would decrease “very substantially.”
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Trump had imposed tariffs on several countries, including China, Indiaand those in European Union, during his first term. During one period of his presidency, tariffs of up to 25% were placed on nearly half of Chinese products, affecting $360 billion worth of goods.
Earlier this month, Trump hinted at the possibility of imposing tariffs of more than 60% on all Chinese imports if he returned to the presidency, amid rising economic and other tensions between the United States and China.
Because matter: Trump’s potential return to the presidency was seen as a business risk by nearly half of Japanese companies, mainly due to the protectionist policies that characterized his previous term from 2017 to 2021.
Previously, in June, Trump had threatened to impose 100% tariffs on Chinese goods in the event of a Chinese presidency Xi Jinping did not close the Chinese spy base in Cuba.
Nobel winner Paolo Krugmann he also criticized Trump’s tariffs, calling them a “bad idea” and “stupid.” He thinks this would lead to the end GATTOR General Agreement on Tariffs and Tradewhich aims to reduce tariffs between signatory countries.
Michele OgniGlobal strategist at Rabobank believes Trump’s proposed 10% tariff on all imported goods could have a significant impact on the global economy, he warned.
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Disclaimer: This content was partially produced with help from Benzinga Neuro and was reviewed and published by Benzinga editors.
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