Over the past two months, tariff policies have changed so quickly that most Americans simply cannot keep up with them.
President Trump has imposed a blanket of 10% imports for imports from most countries. China remains an exception, such as tariffs in a staggering 145%. However, they have previously announced higher tariffs that are still appearing after a 90-day negotiation window if they cannot agree to permanent trade deals with individual countries.
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Given the risks of inflation, recession, antagonized military and commercial allies and countries that throw out the US dollar as their reserve currency, what is the best scenario for tariffs fired by the Trump administration?
Posting Bluski, billionaire Mark Kuban outlined his thoughts of the best scenario. He believes that the blanket 10% tariffs are the most people that Americans can hope for.
– Elon is leaving [Department of Government Efficiency]Whoever decides to stumble the reductions in three years, taking into account the local impact, ”Kuban said. “This slows the economy by reducing interest rates, reducing debt payments to affordable levels. Then with a lower percentage, lower inflation, less deficit and debt, the economy can start to increase enough, we can pay off the debt.
“This implies (President Trump) prolongs tax reduction, but doesn’t change anything else. From the top of my head, it’s the situation with the thread.”
Kuban packs a lot of information in a few sentences, so it’s worth digging a little deeper into this best scenario.
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The country could still escape from a recession and enjoy the soft landing that Jerome Powell is directed.
“The best case, the countries come to the table and negotiate a reduction in tariffs and non-tariff barriers over American goods,” explained Jesus M. Salas, a professor of finance at the University of Lehig. “This increases the demand for American goods, which strengthens American businesses and salaries.”
However, Salas warns that it will take time to see this increase in demand.
Brandon Parsons, an economist at Business School Pepperdine Graziadio, adds that a favorable trade deal with China would help. He noted: “China exports about $ 450 billion in US goods in 2024”
This makes them one of our biggest trading partners, and this would lead to both the largest economies in the world if they fail to come to a trade deal.