US President-elect Donald Trump does not rule out the possibility that new import tariffs under his leadership could increase consumer prices in the US. “I can’t guarantee anything,” said the Republican when asked about this in an interview with the US television station NBC. But he emphasized: “I am a big supporter of tariffs. I think tariffs are the most beautiful word. I think they are beautiful. They will make us rich.”
Trump particularly complained about trade imbalances with neighboring countries Canada and Mexico. They would essentially be “subsidized” by the USA. Large numbers of irregular migrants and drugs also come to the USA from both countries. He therefore told the heads of state and government of both countries that he would impose 25 percent tariffs on imports from there if this did not stop.
The preference for tariffs
During his first term in office, Trump had already resolved various trade conflicts with the help of punitive tariffs. During the election campaign, he again announced far-reaching tariffs for his second term in office – at least 60 percent on goods from China and less high tariffs on goods from other countries.
Tariffs are a type of surcharge on imported goods. They are due at the border when a company or consumer in the US purchases the product from abroad. Trump argues that his tariff policy will lead to US companies producing more in the USA again. That creates jobs. It is the classic “America First” policy that Trump pursued during his first term in office.
But experts fear that such isolation will lead to higher prices. Because many goods from abroad cannot be produced in the USA overnight. Companies are therefore still dependent on imports from abroad for production – import duties then increase the costs for these goods.
