How Trump’s One-for-One Tariff Plan Threatens the Global Economy
Published On Feb 16, 2025, 5:01 AM
President Trump is initiating a new trade policy that focuses on reciprocal tariffs, aiming to create equal tariff rates for imports and exports between countries. This shift poses risks, including increased volatility and potential inflation for international businesses that must navigate complex calculations for thousands of products across numerous nations. The fundamental idea is to ensure fairness, but the execution could be challenging and burdensome for many companies relying on global supply chains.
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The implementation of reciprocal tariffs may lead to increased costs for U.S. manufacturers and consumers, potentially depressing stock prices in sectors heavily reliant on imports. Companies involved in manufacturing and retail sectors may face reduced profit margins and increased uncertainty.
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