Trump’s Tariff Blitz to Slash US Debt
Reciprocal tariffs target trade deficits, boost revenue.
President Donald Trump defended his aggressive reciprocal tariff policy on Monday, claiming it will generate “hundreds of billions” to pay down US debt. Speaking to reporters, Trump said, “We should’ve done this years ago,” referencing his first-term tariffs on China, which were disrupted by Covid. “We’re going to pay down debt with the money coming in—more than the country’s ever seen.”
Trump’s strategy, invoking a 1977 law to declare trade deficits a national emergency, imposes tariffs of up to 50% on countries with US trade deficits and 10% baseline taxes on others. On April 2, he announced these measures but offered a 90-day negotiation window.
Some nations complied, securing concessions, while others faced steeper tariffs. On August 1, Trump signed an executive order hiking tariffs on 69 trading partners, including 41% on Syria, 35% on Canada, 50% on Brazil, 25% on India, 39% on Switzerland, and 20% on Taiwan, while reducing Pakistan’s to 19% from 29%.
“I’m not looking for leverage, I’m looking for fairness,” Trump emphasized, advocating for reciprocal tariffs wherever feasible. The policy, dismantling traditional global trade norms, aims to favor US businesses and reduce reliance on imbalanced trade deals.
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