Recently, Donald Trump, the Republican presidential frontrunner delivered a speech to The Economic Club of New York. While Trump discussed many points, it was during his Q&A period that it became clear how big of a role trade will play if he is elected president in November.
Of the four questions asked, two had to do with the world, like China. The other two questions had to do with domestic policy. But, all four answers Trump gave circled back to trade, and specifically, imposing tariffs.
One of the most significant remarks Trump made, was in passing during a question about bringing down the deficit, when he said the tariffs he is thinking about will be higher than what is being reported.
Pause here for a moment.
What is being reported are the following three ideas from the Trump camp:
A 60% “flat tax” on all Chinese imports into America
A 10% tax on all other imports (i.e. like those from the EU, Japan)
A 100% tax on all Chinese EV imports from Mexico
These are monumental, historic, and disruptive proposals. Specifically, a 60% tax on all Chinese imports could trigger the biggest trade war in all history, as Beijing meets fire with fire.
But Trump is saying his levies could be higher than even these numbers.
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