The Spanish proverb can perfectly define the tariff policy of the president of the United States, Donald Trump: “It’s like Guadiana.” That is, the tycoon is carrying out an intermittent commercial policy, with very irregular and unequal economic messages that are generating a lot of concern among US businessmen and wolves.
According to the Wall Street Journal newspaper, these decisions published through social networks are generating tensions in the White House and concerns even among the ranks of Republican legislators.
In the American vertical they tell, citing sources close to the cabinet, they say that senior officials, including the White House Cabinet Chief, Susie Wile, are receiving “desperate” calls from executive directors and lobbies, urging the administration that calms the instability of the markets through a more predictable tariff agenda. In addition, many great entrepreneurs have given up their efforts that the president changes course in commercial matters, and instead issue pleas to the White House to clarify his approach.
This same Monday, the president and his main advisors met at the White House with the executive directors of IBM, Qualcom and HP and other technological companies. In that appointment, some of the executive directors expressed concern about Trump’s tariffs, warning him that they could be harmful to their sector. That commented on a person who attended the meeting, says the WSJ. Trump said they had talked about investing in the US.
The tariff chaos
Today, the tariffs that are active are 25% on steel and aluminum imports from any part of the world. Initially, this tariff would be 50% for Canada, after the governor of Ontario announced 25% levies to the electricity that sold to the US, in response to the tariffs of the tycoon. Finally, it seems that Ontario decided not to apply the rate, according to the president himself.
“There was a very strong man in Canada who said he was going to impose taxes on electricity from the United States and they have recently informed us that he will not do it,” said the president.
On February 1, the United States announced 25% tariffs on all exports from Mexico and Canada, except oil and energy, which are taxed with 10%. In addition, cars also exclude cars until April 2.
On the other hand, he also announced tariffs on agrarian products from any part of the world and others from 25% to the European Union. But the details of these two measures are not yet known or when they will be applied.
On the other hand, the EU has responded with a tariff package that will enter into force as of April 1 and will affect goods valued at 18,000 million euros. The measure aims to balance the impact that tariffs on steel and aluminum have.
Recognize the recession but it takes iron
The president recently recognized that the imposition of these tariff packages could produce a recession in the United States, which generated a negative reaction on Wall Street.
In a meeting with executive directors at the Roundable Business, Trump defended tariff policies as an engine that would generate income for the country and that could increase even more. Despite the concern of the market and winds against a possible recession, the president took iron to that possibility and reiterated that he would continue to lower taxes.
The secretary of the Treasury, Scott Besent, said last week that the US economy needed “detoxification.” Meanwhile, the Trump team continues to add amendments, exemptions and corrections to their commercial policies at the last moment, generating that concern both in entrepreneurs and in the rest of the countries.
According to what WSJ publishes, the economic officials of the White House, including members of the National Economic Council, are restless, since they fear that this uncertainty causes a spiral of sinking in the balls and causes the increase in the prices of the affected products.
The advisors already warned the president that tariffs could harm economic growth and markets, but ignored and continued their policies.
The White House spokeswoman, Kush Desai, denied the fact that Trump’s economic team were divided. “All members follow the same strategy,” he said.
What the spokeswoman confirmed are the calls received by the senior officials from the business leaders and said that the director of the National Economic Council, Kevin Hasett, spoke with almost a dozen businessmen in recent days.
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