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Washington's use of tariffs is likely to continue

Tuesday, October 29, 2024

Significance

By retaining the tariffs deployed against China during Trump’s first term, and later increasing them for strategic products in tandem with export restrictions on advanced semiconductors, the Biden administration has established a baseline for the use of tariffs from which neither candidate is likely to retreat.

Impacts

  • The International Emergency Economic Powers Act would allow new tariffs to take effect on day one of a second Trump term.
  • A Trump win may prompt a surge of imports from China as companies stockpile in advance of anticipated tariffs, further congesting US ports.
  • Washington’s allies may match its higher tariffs, if only to forestall a flood of Chinese goods diverted towards them from the US market.
  • Whoever wins the White House, US companies trading in strategic sectors face mounting regulatory strategy and compliance burdens.

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