In a Cabinet meeting late last week, the president reportedly ordered his Cabinet to prepare tariff policies against multiple different industries. The first tranche will be aimed directly at those countries buying up Venezuelan oil and gas. These tariffs are set to go into effect on April 2. They want to address uneven trade practices and protect our domestic industries. The decision, announced on Thursday, was part of the organization’s larger strategy. Specifically, the government applied 25% tariffs on every other country that exchanges oil and gas with Venezuela.
The president reiterated the importance of these measures and added that more sector-specific tariffs are being considered. Even though these tariffs have yet to be completed, they threaten the release of tariffs into major sectors like automobiles, pharmaceuticals, lumber, and semiconductors. These up-close and personal tariffs are intended to take effect “further down the road,” as the president’s own statements indicate.
“So we’ll be announcing some of these things in the very near future, not the long future, the very near future.”
White House Official’s Clarification on Sector-Specific Tariffs
A White House official conveyed to CNBC that the specific sector tariffs “may happen or may not,” indicating that their implementation could follow the initial batch of “reciprocal tariffs” due on April 2. This means that even though the plan has started, some of these broad industry exclusions may happen.
As the Wall Street Journal noted, the White House can leave out some specific industry tariffs. These exclusions should only go into effect with the April 2 implementation. This bolsters our previous president’s claim that “all tariffs are not fall on that day.” Its importance signals the start of a phased enforcement rollout of tariff protection.
The president underscored the rationale behind these actions by stating, “We’ve been ripped off by every country in the world,” highlighting his administration’s stance on rectifying perceived unfair trade practices. He told the story of a long-in-the-making recent action against Venezuela. This indicates a significant willingness to address long-time undeterred trade practices.
“We’ll be announcing that fairly soon over the next few days, probably, and then April 2 comes, that’ll be reciprocal tariffs.”
What The Author Thinks
Trump’s tariff strategy, while aggressive, highlights the administration’s focus on correcting trade imbalances. However, the lack of clarity and timeline around sector-specific tariffs creates confusion, leaving businesses uncertain about future trade conditions. This piecemeal approach may cause economic disruption before any substantial benefits are realized.
