““Will turn into a melting ice cube”: US Treasury explained when Trump’s tariffs will be reducedUS Treasury Secretary Scott Bessent stated that tariffs on imports from other countries are likely to decrease if trade imbalances
improve. The main goal of applying tariffs is to restore balance to the US current account deficit, which stands at $1.18
trillion.
”, — write: unn.ua
DetailsHe explained that the main goal of the Trump administration’s use of tariffs is to “rebalance” the US current account deficit, which as of 2024 stands at $1.18 trillion, the largest among all major countries.
Over time, tariffs will become a melting ice cube
Currently, according to him, a deficit of such a scale could potentially lead to a financial crisis.
If production returns to the US, then we will import less. So we will rebalance
He added that Trump uses tariff policy for foreign policy negotiations.
RecallOn August 7, new tariffs introduced by US President Donald Trump came into effect. According to Bloomberg Economics, Trump’s actions will generally lead to an increase in the average US tariff rate to 15.2%, significantly exceeding last year’s level of 2.3% and being the highest figure since World War II.
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