WIREDGOV

Julian Jessop, Economics Fellow at the free market think tank the Institute of Economic Affairs commented on speculation around Trump’s commitment to implementing new tariffs

“President Trump held back from introducing new tariffs on Day 1, but still announced an overhaul of the US trade system which will lay the groundwork for more taxes on imports in future.

“Tariffs would be good for some US companies who might benefit from reduced competition, but bad for others who would face higher costs. And they would be bad for US consumers, who would pay higher prices and have less choice.

“Tariffs could raise some extra tax revenues, but at least part of this would be paid by US companies and households as importers pass on the additional costs.

“Some will hope that President Trump is only raising the threat of tariffs to secure concessions from other countries. But his recent words, as well as his actions during his first term, suggest that he strongly believes in tariffs as a policy tool.

“The UK economy is less vulnerable to US tariffs than many others, especially China, Mexico, and Germany. But there could still be further spillovers to the UK from a longer period of high interest rates in the US, as the Fed responds to the additional pressures on inflation.”

Commenting on President Donald Trump’s decision to exit the United States from the World Health Organisation, Dr Christopher Snowdon, Head of Lifestyle Economics at the free market think tank the Institute of Economic Affairs, said:

“Donald Trump is right to get America out of the WHO. It is the FIFA of public health: unaccountable, corrupt and incompetent. It has repeatedly dropped the ball on infectious disease control and spends half its time obsessing over sugary drinks, vaping and drinking.

“Since the pandemic, the WHO has shown no willingness to reform. The only option now is to de-fund and replace it. The USA should divert its funding towards organisations that are focused on eliminating infectious disease. Millions of lives depend on it.”