We all know that Trump is the best deal maker around, what if he's using these reciprocal tariff's to drive everyone's down to zero?
Think about it, some countries will match %'age's - i.e. like for like, and some countries will take advantage by setting zero on US goods so they get zero tariff's on their goods going to the US, giving them an economic advantage over others.
That won't last long, everyone else will be pressured to drop their tariff's with the US to zero to ensure they aren't being penalized vs. other countries.
If it plays out that way, then this will be a massive shot in the arm for the global economy and a major blow to a lot of top heavy governments.
Just a thought.
The baae rate is 10%.
The minimum will likely remain at 10% except for a special few. Tariffs are meant to get rid of income taxes for the middle and lower classes.
Trump will create a surplus budget and pay down the debt. There will still be debt out there to help stabilize countries and provide a safe income stream for Americans. But it will be offset by the strategic reserve.
My guess is that the tariffs are going to expose financial terrorism.
I think many countries will continue to use tariffs as a source of income. For any dictators, or politicians that aspire to control their country's populace, or simply to get rich, it's a traditional and reliable income source. After all, somebody's got to pay for the roads, and tariffs are easier to collect than taxes.
Trump has said tariffs will pay for our government, so I don't see them going to zero.