The President-elect has spoken about imposing tariffs on imported goods, in an effort to boost US manufacturing.
With less than a month to go until Donald Trump is sworn into office, it has been reported that Trump’s transition team is discussing a proposal to impose tariffs as high as 10% on imports.
Reince Priebus, incoming White House chief, originally pitched a 5% tariff on imports. The higher figure could be implemented via executive action or as part of a sweeping tax reform package pushed through Congress.
Imposing tariffs could raise the cost of consumer goods in the US, with many believing that it could would also embroil the nation in trade wars. The move would potentially have a major impact on industry suppliers and distributors who import products from China and other factories abroad.
Jonathan Isaacson, president of Gemline, commented: “Tariffs would ultimately be bad for producers and consumers, raising prices, reducing choice, and risking a trade war that nobody wins”.
The President-elect has targeted globalisation and free trade, vowing to put an end to the North American Free Trade Agreement.