President Donald Trump attended a meeting from the Cabinet to the White House in Washington, DC, United States, on April 10, 2025.
Nathan Howard | Reuters
President Donald Trump The increase in import prices from China would end most exchanges between this country and the United States, according to economist Erica York.
“It depends on the fence of the price or the way it is widely applied, but generally if you get north of a three-digit rate, you remove most exchanges,” said the vice-president of the federal tax policy of the tax center of the tax foundation for federal tax policy on CNBC “The exchange“THURSDAY.” There may still be things without any substitute that companies only have to pay the bill, but for the most part, it cuts it. “”
His remarks occurred in the middle of the market destroying some of his monster earnings seen on Wednesday. The market accelerated decreases on Thursday once a White House manager confirmed to CNBC that the American pricing rate on Chinese products is now 145%. This total includes the recent increase at 125%, compared to 84% that Trump announced on Wednesday as well as a 20% fentanyl duty that the president had previously put into force.
York pointed out that the market is still not clear, saying: “It is not as if the threat had disappeared”, because no clarity is expected before July, when the reversal of the price should end.
Trump announced on Wednesday that he Temporarily reduce rate rates On imports from most countries, with the exception of China, 10% for 90 days. During a meeting of the cabinet on Thursday, the president refused to exclude the possibility of extending 90 -day stay.
Given the tariffs of China, the basic line at 10% of samples still in place and other rates in the sector, Trump has nevertheless taken the country in his most protectionist position for decades, even with the break.
“We will still need the average rate rate at the heights that we have not seen since the 1940s, so it's major,” added The Economist. “It is an increase in enormous costs. It is an economic blow. It clearly does not put us on a very good path.”
The Fact Foundation believes that all the new Trump prices lead to an increase in federal tax revenues $ 171.6 billion for this year. This would make Trump prices the highest increase in tax since 1993, more than hikes of the two former presidents George HW Bush and Barack Obama, the institution revealed.
China has said it didn't start If the commercial dynamics were to transform into a trade war. A few hours before the announcement of Trump's price break, China increased its reprisals on American imports At 84%, against 34%, which entered into force on Thursday.
