Experts say the US benefits more than it loses from Trump's tariff policy.
Thorsten Polleit, former chief economist of Degussa – Europe’s largest precious metals trader and Professor Emeritus of Economics at Bayreuth University, said that increasing the cost of imported goods would make US goods more competitive in price.
The US economy will receive a new impetus in the short term and will benefit more than suffer from the tariff policy proposed by US President Donald Trump, expert Thorsten Polleit said in an interview with TASS news agency.
“It would be a good idea for Americans to replace income taxes with import taxes, as Mr. Trump has proposed. They would gain more than they lose – at least in the short term,” the expert said.
The side effects of this policy will have a positive impact on the US economy, he said. Specifically, the increased cost of imported goods will make domestically produced goods more competitive in price. In addition, foreign manufacturers may decide to move production to the US, contributing to promoting job growth in this country. In that context, the Trump administration's intention to ensure the lowest corporate tax rate in the world also plays an important role, Mr. Polleit added.
“Combined, this will increase the purchasing power of the American people and create a new momentum for the economy,” the economist concluded.
Earlier, Fox Business reported that in a speech in Florida on January 27, President Trump proposed completely abolishing the federal income tax to bring the US back to the "most prosperous" period in history.
"Instead of taxing our citizens to enrich other countries, we should tax other countries to enrich our citizens," the US President declared.
On February 1, Mr. Trump signed an executive order to impose tariffs on goods imported from Canada, China, and Mexico. According to this document, a 25% tariff was applied to imports from Mexico and Canada (10% for energy resources from Canada). However, after phone calls with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau, President Trump decided to postpone the implementation of these tariffs for 1 month. In addition, the US also imposed an additional 10% tariff on goods imported from China.
