Trump threatens US trade policy of ‘tariff and tax’ on other countries
Sign up now: Get ST's newsletters delivered to your inbox
US President Donald Trump salutes at his inauguration ceremony in Washington, on Jan 20.
PHOTO: REUTERS
Follow topic:
WASHINGTON - US President Donald Trump promised tariffs and taxes on other countries on Jan 20, in a nationalistic inaugural address after being sworn in as the 47th president.
“I will immediately begin the overhaul of our trade system to protect American workers and families,” he said at the US Capitol.
“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” Mr Trump added.
Since his election victory in November, Mr Trump has taken aim at allies and adversaries alike, raising the prospect of fresh levies to push other countries
Before his White House return, Mr Trump vowed to impose 25 per cent tariffs on Canadian and Mexican imports, and an additional 10 per cent on Chinese goods, if they did not do more about illegal immigration and the flow of fentanyl into the United States.
On the campaign trail, Mr Trump also floated the idea of much steeper tariff rates – 60 per cent or more – on Chinese imports.
But he stopped short on Jan 20 of unveiling new tariffs, which are applied on imported goods when a US buyer purchases them from abroad.
‘America First Trade Policy’
The White House said on Jan 20 that under the Trump administration, all agencies would adopt “emergency measures to reduce the cost of living.”
It added that Mr Trump would unveil his “America First Trade Policy,” stressing also that Washington would not be beholden to foreign organisations for its tax policy.
In his speech on Jan 20, Mr Trump reiterated his plan to set up an “External Revenue Service” to collect tariffs, duties and revenues, promising “massive amounts of money” pouring in from foreign sources.
The name is a play on the Internal Revenue Service, a bureau under the Treasury Department that administers and enforces US tax laws.
“The American dream will soon be back and thriving like never before,” he said.
Some analysts have warned that tariff hikes would bring higher consumer prices and weigh on GDP growth over time.
But Mr Trump’s supporters have pointed to his other policy proposals like tax cuts and deregulation as a means to spur growth.
Mr Trump’s Treasury secretary nominee Scott Bessent told lawmakers on Jan 16 that he disagreed the cost of tariffs would be borne domestically.
On Jan 20, Mr Trump also said his government would establish a new Department of Government Efficiency.
The office dubbed Doge, to be led by Elon Musk and businessman Vivek Ramaswamy, is eyeing some US$1 trillion (S$1.4 trillion) in cuts to federal spending.
While Doge has an advisory role, Mr Musk’s star power and strong influence in Mr Trump’s inner circle bring political clout. AFP
