Economists remain sceptical about Trump's threatened tariffs
Donald Trump’s tariffs remain unconfirmed, leaving much uncertainty. Many economists remain unconvinced he will follow through.
Donald Trump could have imposed tariffs on day one of his second presidency — but he didn’t. Instead, headlines from the administration’s second day in office are dominated by deliberations over a potential 10% tariff on Chinese imports, alongside plans to scrutinise trade relationships with Mexico, Canada and Europe.
This decision to hold off on tariffs — at least in the short term — has several economists holding on to their scepticism that the newly inaugurated US President will go as far as he threatened during the 2024 election campaign.
Among those raising doubts are offshore analysts at Citi, who issued a note late on Wednesday evening (Australia time) doubling down on their expectation that the “base case” is for these higher import levies not to be implemented.
"In a press conference, Trump indicated that the [tariffs] he floated are meant to encourage these countries to address the flow of fentanyl," the analysts said in the note.
