Trump’s pricing thrust is a race against time, the potential backlash of voters

By Christopher Rugaber, writer AP Economics

Washington (AP) – President Donald Trump’s new pricing regime returns to his head a global trend of several decades of drop in commercial barriers and is probably, according to economists, to increase the prices of Americans by thousands of dollars each year while slowly slowing down the American economy.

The White House plays that other countries will also suffer enough pain to open their economies to American exports, leading to negotiations that would reduce the prices imposed on Wednesday. Or, the hopes of the White House, more companies – American and foreign – will reverse their movements to the world supply chains and bring more production to the United States to avoid higher import taxes.

But a key question for the Trump administration will be how Americans react to the prices. If prices increase significantly and jobs are lost, voters could turn against tasks and make them more difficult to keep them in place during the time necessary to encourage companies to return to the United States

The Yale Budget Lab believes that all prices of the Trump administration would cost the average household 3,800 in higher prices this year. The figure includes the impact of the universal price at 10% announced on Wednesday, as well as much higher prices on around 60 countries, as well as on previous import taxes on steel, aluminum and cars. Inflation could exceed 4% this year, compared to 2.8% currently, while the economy can barely grow, according to estimates of the financial nationwide.

The average price of the United States could reach almost 25% when the prices are fully implemented on April 9, believe that economists, higher than that of more than a century and higher than the 1930 Smoot-Hawley prices which are largely blamed for the worsening of the great recession.

“The president has just announced the de facto separation of the American economy of the world economy,” said Mary Lovely, senior at the Peterson Institute for International Relations. “The scene is set at higher prices and slower long -term growth.”

Commerce secretary Howard Lungick, in an interview on CNBC on Thursday, said policies will help markets to open abroad for American exports.

“I expect most countries to really start to examine their trade policy towards the United States of America and stop taking it,” he said. “It is the reorganization of fair trade.”

The Americans, one day after the announcement, have mixed feelings.

Bob Lehmann, 73, stopped by a better purchase in Portland, Oregon, to buy a keyboard on Wednesday. He opposed the prices. “They will increase prices and make people pay more for daily life,” he said.

Mathew Hall, a 64 -year -old painting entrepreneur, said he thought that prices were a “good idea” and that potential short -term price increases were worth it.

“I believe that in the long term, it will be good,” he said, adding that he thought that the United States had been enjoyed.