Why Trump's reciprocal tariffs won't work for the US
As President Trump proposes plans for 25% tariffs on all aluminum and steel imports, Washington Note Founding Editor Steve Clemons joins Catalysts to analyze the Trump administration's trade strategy in depth. Clemons describes the US economy is "in a little bit of something like quicksand" regarding tariffs' potential impact and longevity. He characterizes Trump's latest threat of 25% tariffs on steel and aluminum as a "strategic national security-oriented threat," arguing, "That's why I think the markets are shrugging off this dimension of tariffs." Regarding reciprocal tariffs being levied against countries with tariffs on the US, Clemons emphasizes that many countries produce goods the US needs or benefits from. "So this notion that you're gonna have a bilateral arrangement where both sides have complete reciprocity in tariffs, I think President Trump is gonna get singed a little bit on that front," he explains, warning of potential harm to the farming industry. However, Clemons acknowledges the expertise of key strategists in tariff implementation, such as US trade representative nominee Jamieson Greer, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick. "Rather than looking at just basically the surface noise, we need to look underneath a little bit about how they're doing it," he tells Seana Smith. "I think there's some confidence in that. That's very different than bluster; it's much more about what are we actually getting and how are we measuring the impact of these tariffs on the bottom line of US industry." To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Angel Smith
