Zuma’s world president Heather Zumarraga explains how prices will have an impact on the short -term stock market on Varney & Co.
President Donald Trump announced his latest pricing plan on Wednesday afternoon in an event at the Rose Garden of the White House, which, according to him, will focus on the imposing reciprocal prices on American trade partners.
Trump’s “release day ”’s pricing announcement comes after the conclusion of the negotiation day against the American financial markets, which have been shaken by uncertainty on the tariffs in recent weeks. The S&P 500 is down approximately 3.9% over a year and the earnings of the reference index since the Trump elections in November were erased with regard to the expansion of the trade war.
“On April 2, 2025, we will forever remember when the day when American industry is reborn,” said Trump in the remarks of The Rose Garden. “In a few moments, I will sign a historical decree by instituting reciprocal prices all over the world. It means reciprocal – that means that they do it, and we do it. Very simple, cannot become simpler than that.”
“It is one of the most important days, in my opinion, in American history. It is our declaration of economic independence. For years, American workers have been forced to sit on the sidelines while other nations were enriched and could largely at our expense,” said Trump. “But now, it’s our turn to prosper, and in doing so, use billions of billions and billions of dollars to reduce our taxes and repay our national debt, and everything will occur very quickly.”
Wall Street companies see the risk of recession on prices, trade war
President Donald Trump will announce his price plans on Wednesday. (Jabin Botsford / The Washington Post via Getty Images / Getty Images)
What are the prices?
Trump and the White House discussed several price options, although in the hours before the announcement, it remained clear what it will imply.
The president said that he wanted “reciprocal” prices on other countries, which would correspond to American import rates at the rate rates that foreign governments apply to American products – although he said later that prices would be “generous” by invoicing less in prices.
Trump is “ always ready for a good negotiation, ‘said the White House, as on April 2 of the “Liberation Day” of the Weaving Prices
Aside from the reciprocal tariff plan, the Trump administration also discussed a cross rate up to 20%, as well as a plan to concentrate prices on 15 countries with high levels of trade with the United States and relatively high rate rates.
The secretary of the House White’s Table, Karoline Leavitt, said on Monday that there was no exemption at the prices, including for farmers, who were a central target for reprisals from foreign countries during Trump’s first mandate.
The White House also plans to launch its “External Revenue Service” to supervise the collection of prices by going to this responsibility of customs and the protection of American border to the new ERs within the Department of Commerce. The Trump administration maintains that companies and external countries pay prices, although economists are largely suitable that they are paid by the import company, which would be in this case American companies.
Trump’s “External Revenue Revenue” will accumulate with importers, not “foreign sources”
The American agriculture industry was the main objective of reprisals of trade partners during Trump’s first term. (Scott Olson / Getty Images / Getty Images)
Trump imposed prices of 25% on imports from Canada and Mexico with a sculpture for a rate of 10% rate of Canadian energy products, then delayed these prices to take effect on goods covered by the American-mexico-Canada (USMCA) agreement until April 2, when its new prices will replace them.
Trump had previously announced 25% of prices on automotive imports, which took effect on April 3 and imposed prices of 25% on imported steel and aluminum. Other pricing plans specific to the influx sector include copper, semiconductors, pharmaceuticals and wood.
What is the next step?
The Trump administration’s tariff team has worked on the structuring of prices and negotiations with a number of other countries. The team includes President Trump, the Treasury Secretary Scott Bessent, the secretary of trade Howard Lutnick, the representative of the United States Jamieson Greer and the director of the National Economic Council Kevin Hassett.
Leavitt said on Tuesday that “a lot of countries” contacted the Trump administration to discuss the means to reduce prices.
How much did the help of the trade war cost during Trump’s first term?
Prices are taxes on imports that are paid by the importer when the price property enters the country. (Sam Wolfe / Bloomberg via Getty Images / Getty Images)
The Trump administration has suggested that prices – which are taxes on imported goods – could serve several objectives, such as the increase in federal tax revenues to compensate for other tax cuts, encouraging the relocation of manufacturing or as a negotiation tool to reduce the tariffs between American business partners.
These objectives are contradictory in certain respects: the prices which are imposed and which were then removed by negotiations resulting in a drop in trade barriers generate less tax revenue and abolish the incentive to relocate. Likewise, if companies move operations in the United States to avoid prices, the government would receive less tax revenue.
Get Fox Affairs on the move by clicking here
Trump’s announcement could shed light on the final objective of the administration for its pricing plans, as well as the status of its interviews with American trade partners.
Edward Lawrence and Fox Business Christina Wurm contributed to this report.
It is a story in development. Please check the updates.
