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US President Donald Trump reiterates new-old tariff threats

United States (US) President Donald Trump spoke with reporters in Washington, DC on Monday, re-announcing plans to issue additional tariffs on automobiles, aluminum, and pharmaceuticals "soon". This follows the Trump administration's recent unilateral 25% import tax on all steel and aluminum entering the US. President Trump also took the opportunity to make a new tariff threat, announcing that the US would be imposing an additional 25% tariff on all goods coming to the US from countries that buy Venezuelan Crude Oil products.

Never one to miss an opportunity to make a statement, Donald Trump also touched on a wide variety of old and new topics. The Trump team is once again "close" to signing a "rare earths" deal with Ukraine; Trump would like to see the Federal Reserve (Fed) lower interest rates, even as the US economy sputters and inflation concerns re-emerge; Trump expects to unveil a brand-new air traffic system after a series of deadly airplane crashes immediately followed the termination of thousands of FAA workers and air traffic controllers at the beginning of Trump's term.

According to both Trump and his Commerce Secretary Howard Lutnick, April 2 remains the hard launch date of wide "reciprocal" tariffs on any country that has a tariff on US goods, with the Trump administration ready to declare foreign VAT taxes as a form of tariff as well. President Trump also noted during his roving speech that companies have been returning their operations to within the US's borders and that they have all been investing heavily in the US economy. The specific details of which companies are moving their operations to the US and how much they are investing remain elusive.

Key highlights

Any country that buys oil or gas from Venezuela will pay a 25% tariff to the US, effective April 2nd.

The US is putting secondary tariff on the country of Venezuela.

Companies are all coming back to the US.

Investment numbers are beyond expectations.

The CHIPS act was a disaster.

Will be announcing tariffs on autos, aluminum, and pharmaceuticals in the very near future.

Tariffs will keep US taxes low.

Energy prices are coming down.

I hope the Fed lowers interest rates.

We will get brand new air traffic system.

We’re dealing with people in Greenland who want something to happen.

Greenland is calling us, we're not calling them. It's important for national security.

I was very concerned about the economy six months ago.

We inherented a very bad situation.

Agreement on rare earths to be signed shortly.

Agreement on rare earths just about completed. I will sign soon.

We're talking about territory now and talking about power plant ownership.

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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