Robert Kelly
The administration of United States President Donald Trump has suggested it will broker ninety trade deals in ninety days in the wake of Trump’s imposition of ‘Liberation Day’ tariffs. Trump has instituted a substantial, across-the-board tariff of ten percent on imports into the US. He has also slapped country-specific tariffs on individual nations. Some of these tariffs, such as those on China, are hugely disruptive. Trump now suggests he wants to negotiate with his tariff targets. It is unclear whether any new trade deals would eliminate the tariffs.
If Trump follows through on his tariff war, many countries will effectively decouple from the US. Exorbitantly high tariffs on poor countries, particularly, will make their exports so pricey that they will likely stop exporting to the US altogether. The tariffs on China are even more punishing. Trump has repeatedly threatened to tariff China over one hundred percent! This would more than double the price of goods from China.
In practice, this would rapidly decouple the US and China. The unpredictable fallout from such a massive, rapid rupture is likely why Apple scrambled to get a tariff exemption and why Trump expects Chinese President Xi Jinping to call him to deal. But tariffs are unlikely to yield the rapid results—within ninety days—Trump demands.
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