Trade expert urges businesses to let Congress know impacts of tariffs

Understanding the Tariff Policies of the Trump Administration

Businesses involved in international trade may not always agree with the tariff policies of the Trump administration, but it is important to try to understand the reasoning behind them as they are likely to remain in place.

During a lunch event at World Trade Day, trade expert Penelope Naas, referred to as a “tariffologist,” discussed the current state of tariffs. She mentioned that while trade deals can help adjust tariffs, the current 10% rate seems to be firm at the moment.

Given the stress surrounding tariffs, the World Trade Center even offered a “Tariff Therapy Oasis” room for attendees at the event.

Naas highlighted four key benefits that President Trump believes higher tariffs will bring, including reducing the trade deficit, promoting domestic manufacturing, creating leverage over trading partners, and generating revenue for the country.

Despite Trump’s strong convictions, Naas mentioned that he can be influenced by various factors such as the impact on his supporters, opinions of CEOs, and feedback from Republican members of Congress. She encouraged businesses to lobby their political representatives to make them aware of the challenges they are facing.

Recent events, such as warnings from CEOs like Jamie Dimon and Tim Cook, have led to temporary pauses or reductions in tariffs on certain products. Additionally, countries like Canada, the European Union, and China have strategically targeted tariffs to push back against the U.S. and prolong resolution efforts.

While more than 60 countries have been affected by reciprocal tariffs, Naas pointed out that the administration is understaffed in terms of negotiating agreements simultaneously. The ultimate goal seems to be resetting the trade relationship with China, which has become a dominant force in global manufacturing.

China’s influence in various industries, including electronics and manufacturing, poses a challenge to the U.S. and other countries. Naas highlighted the strategic approach China has taken to become a top military power and dominate global manufacturing.

It is evident that the trade landscape is complex and requires careful navigation. By staying informed and understanding the motivations behind tariff policies, businesses can better adapt to the changing international trade environment.