Trump team preparing for sweeping 20pc tariffs - report
By Josh White
Date: Tuesday 01 Apr 2025
(Sharecast News) - The Trump administration preparing a major shift in US trade policy was said to be looking at plans to impose tariffs of around 20% on most imports, it emerged on Tuesday.
According to the Washington Post, citing individuals familiar with the matter, the proposals, expected to be unveiled this week, could represent one of the most aggressive overhauls of the global trading system in decades.
While the exact structure of the tariffs remained undecided, WaPo said the administration was considering a universal tariff that would apply to most countries, potentially generating over $6trn in federal revenue.
Officials were also weighing country-specific rates or targeted tariffs on key sectors such as automobiles, pharmaceuticals, and timber.
Discussions were ongoing over whether to use the resulting revenue for a nationwide tax rebate or dividend, though planning was reportedly preliminary.
President Trump had indicated support for a flat tariff rate, saying recently that the policy should begin with all countries and be reciprocal to what they charge the US.
Aides said the move was intended to reverse what they saw as decades of unfair trade practices that had weakened American industry and eroded domestic manufacturing.
The announcement was set for 2 April , which Trump labelled "Liberation Day," although the details could still change.
WaPo said that Wilbur Ross, former commerce secretary and a close Trump ally, confirmed that rates between 15% and 25% were under review, noting internal debates over possible exemptions for goods no longer produced domestically.
Despite the administration's optimism, mainstream economists and financial institutions had raised strong concerns.
Analysts at Moody's warned that a universal tariff of 20% could lead to a prolonged recession beginning immediately, with unemployment rising above 7% and more than five million jobs lost by early 2027.
Goldman Sachs meanwhile predicted that even a 15% tariff would slow economic growth to just 1% by the end of this year, with a more than one-in-three chance of recession.
Economists also argued the tariffs would disproportionately burden lower-income Americans by raising prices and increasing costs for businesses reliant on imported components.
Stock markets had already reacted to the prospect of tariffs, with the S&P 500 down 8% since Trump revived the idea in February.
Reporting by Josh White for Sharecast.com.
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