Feb 21 • 20:29 UTC 🇸🇪 Sweden Dagens Nyheter

Four Members Could Puncture Trump's Tariffs

Recent tariff proposals from the U.S. involve fluctuations between the elimination and introduction of varying rates, contributing to economic uncertainty.

In a span of barely 24 hours, three tariff proposals have surfaced from the U.S. government, first proposing the elimination of trade tariffs, then introducing a 10 percent tariff, and most recently proposing a 15 percent tariff set to begin on Tuesday. This inconsistent approach raises questions about the fate of billions that the U.S. state has accumulated from previous illegal tariffs. Experts warn that the possibility of businesses attempting to reclaim funds from the government could lead to complications, further fueling the prevailing economic uncertainty in the U.S. regarding its policy and administrative handling.

Ola Olsson highlighted how this situation can create chaos for companies trying to recover their finances, emphasizing how it feeds into a broader atmosphere of uncertainty regarding economic policy. Similarly, Swedbank's chief economist Mattias Persson noted that the inconsistency of the tariffs contributes to an unpredictable business environment, making it difficult for companies to plan for the future. This perpetual state of ambiguity around tariff regulations means businesses remain in a constant state of caution, unsure whether these tariffs will be enforced consistently throughout the year.

The new tariffs, initiated by Donald Trump following a ruling by the Supreme Court, are supported under section 122 of the 1974 Trade Act, which authorizes the President to temporarily impose 15 percent tariffs for a 150-day period. This legal backing for the tariffs indicates a significant use of executive power in trade policy, leading to increased scrutiny and debate over the broader implications for international trade and the U.S. economy as a whole. As this situation develops, the impact on businesses and the economic landscape will likely continue to be challenging and fraught with uncertainty.

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