Recently, Donald Trump discussed tariff issues with Ukraine's president during his visit to Italy while actively commenting on the situation on social media. This discussion takes place amid negotiations with Italy and statements from the U.S. Treasury Secretary.
Trump's Tariff Objectives
Trump plans to make tariffs a permanent fixture in the economy, aiming to lower existing high rates and encourage countries to engage in mutual concessions to address trade imbalances. He announced that activating tariffs, referred to as the 'external income service,' is intended to improve Americans' well-being and reduce taxes.
Impact of Tariffs on American Citizens
Trump claims that activating tariffs could lead to decreased income taxes for many Americans, especially those earning less than $200,000 annually. He argues that this will create numerous jobs due to the construction of new factories. 'When tariffs are activated, many people's Income Tax will significantly decrease, possibly even disappear,' he emphasizes. CITE_NA.
Trade Tensions with China
The tariff situation becomes increasingly uncertain amid rising tensions with China. Given China's strong technological position, such as Huawei's development of a new AI chip, the U.S. may face serious economic competition. However, Treasury Secretary Bessent notes that there are pathways to reach a tariff agreement with the Chinese side, stating that 'trade discussions with Asia are progressing positively.' CITE_W_A.
As June approaches, the urgency for laying solid groundwork for tariff agreements becomes increasingly apparent, especially considering the impact on the cryptocurrency sector.
