| Asia braces for steep China tariffs in second Trump term |
| The Wall Street Journal's Greg Ip says President-elect Donald Trump plans tariffs and tax cuts, just as
in his first term, but adds: "there’s a difference . . . The tariffs he’s
planning will be broader and higher, and the tax cuts more narrowly
targeted." Trump can act on tariffs without asking Congress’s permission,
but Ip notes that administrative procedures and negotiations could delay
implementation. Although Trump has proposed tariffs that are much higher than
those in his first term - at least 60% on China, and 10% to 20% on the rest of
the world - Goldman Sachs economists believe he would raise tariffs on China by
20, not 60, percentage points, and will not impose an across-the-board tariff
on other countries. Meanwhile, Ip notes that some of Trump’s tax proposals,
which have at times included lower corporate tax rates, and exempting tips,
Social Security benefits and overtime pay from taxes, would, the Committee for
a Responsible Federal Budget estimates, add about $4tn to the deficit
over 10 years. The author also thinks that Trump's proposals for lighter
regulation ought to boost growth and business confidence and hold down
inflation, but economists think the effects are too difficult to identify in
the broader economy. |
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