US Commerce Secretary Lutnick: Trump to impose tariffs on other nations by end of week
In a Fox News interview early Tuesday, US Commerce Secretary Howard Lutnick said that President Donald “Trump is expected to impose tariffs on other nations by end of week.”
Additional quotes
“The European Union (EU) to pay 15% tariff except for a few small items.”
“Trump to make tariff decision for other nations this week.”
“Trump to consider several deals this week, then establish rates.”
'”Table set' with nations that have offerred access.”
"Next week, we're off.”
Market reaction
Traders remain in a cautious mood, in anticipation of high-impact US economic events this week, starting on Tuesday. Therefore, the US Dollar Index has paused its uptrend, currently trading modestly flat at around 98.65.
Tariffs FAQs
Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.
Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.
There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.
During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
