In less than a day, three different tariff proposals came from the US. First the trade tariffs were reduced, then the trade tariffs of 10 percent and now finally from Tuesday the trade tariffs of 15 percent.
It is impossible to say how the many different announcements will affect the market, says Ola Olsson, professor of economics at the University of Gothenburg. It is still unclear which tariffs apply and which do not.
It is also unclear What happens to the many billions that the state has earned so far from illegal tariffs?
– Things can get chaotic when companies have to demand money back from the government. In general, this continues to contribute to the uncertainty that exists in the USA regarding economic policy and the government’s approach, says Ola Olsson.
Mattias Persson, chief economist at Swedbank, is along the same lines:
– A completely different uncertainty arises, you don’t know what tariffs will apply and whether they will apply for the whole year? he told TT earlier on Sunday.
The new tariffs, imposed by Donald Trump following the rejection of HD is supported by Section 122 of the Trade Act 1974. It gives the president the right to temporarily impose tariffs of 15 percent, which can last for 150 days. After that, congressional approval is required.
It is by no means certain that the tariffs will survive a vote in Congress, says Ola Olsson.
– There are many tariff skeptics in the Senate, and it would be enough if four voted “no” for the law not to be passed, he says.
The Republicans currently have 53 seats in the Senate and the Democrats have 45. There are two independent politicians. In the House of Representatives, the situation is more balanced: 219 Republicans versus 214 Democrats. In this case, the vote would take place this summer, before the midterm elections in November.
USA expert Dag Blanck believe that Donald Trump can enforce the tariffs. There is little opposition to him within his own party, although there is some opposition to his economic policies.
-Historically he has been very successful in bringing his own party along. “They vote for him through thick and thin,” says Dag Blanck.
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