The ripple effect that Trump's rates will have on the rest of its agenda

Copyright © HT Digital Streams Limit all rights reserved. Amrith Ramkumar, Gavin Bade, The Wall Street Journal 5 min Read April 8, 2025, 07:13 am Ist Trump’s rates venture inflation, hit supply chains and can hinder the goals on AI, drugs and energy. Summary it’s not just inflation. Manufacturing and artificial intelligence are also at risk. President Trump has promised to export rates to benefit US workers and the US economy. He maintains that they will do so, but the risk exists that rates to reduce inflation, support domestic manufacturing and accelerate data centers to promote the technical sector. This is how Trump’s latest rates, which include 10% levies on all imports and much higher duties on countries such as India, Vietnam and China, can affect other parts of its domestic agenda: inflation problems to combat inflation was Trump’s central promise of the campaign last year. The rates of rates can boomer on consumer due to how dependent on the US on raw materials and manufacturing components from other countries, economists said. At the grocery store, prices for seafood, cheese and alcohol are expected to rise as a result of how much is imported from Europe and Asia. The US relies on other countries to make its clothes and shoes, attracting expectations for higher prices in that area. Some consumers are producing products abroad. “There are so many multiplying effects and different supply chains supply chains that are difficult to elicit,” said Sanjay Patnaik, director of the Center for Regulation and Markets at the Brookings Institution. “We will only see the consequences if the prices start to bite.” Consumers can see even more pain if Trump decides to remove an exemption for certain products from Mexico and Canada, a move that is likely to make the market for avocados, tomatoes, berries and other products disappear. Andy hairy, Vice President of FMI, a trading group representing food traders and suppliers, said: “The biggest concern is more than anything else. Trump administration officials and allies believe any inflation caused by rates will be offset by their other policies, such as reducing taxes and increasing energy production. Those areas. Concerns about a recession will go over. Some consumers in the US keep products abroad. Pharmaceuticals of medicine are exempt from the so -called reciprocal rates on specific countries that Trump announced, but the administration is still considering separate levies on medicinal medicine as it wants to bring more production back to the US. The existing rates can still place the supply chains of the industry because China and other countries are large producers of the ingredients that are the building blocks of many pharmaceuticals. Generic medicines such as injectable articles produced with a lower profit margins are especially vulnerable and difficult to make in the US, which means that providers are likely to have to raise prices or consider going out of the market, says industry experts. Tom Kraus, Vice President of Government Relations at the American Society of Health System Appealers, said: “To do it with rates, these other problems regarding possible drug shortages. -Tariff on all imported cars will spur more manufacturing in the US and increase the economy. Manufacturing industry limited. But the broad duties of products from India mean that the iPhone maker can be hit especially by rates. CEO Tim Cook won a tariff release for the iPhone especially during the first Trump administration. Analysts estimate that it would cost ten billions of dollars and years for Apple to move even a decoration of its complicated supply chain in Asia to US data centers, Trump said he wanted to dominate artificial intelligence to protect US national security and become a leader in a major industry. The goal is based on data centers, which require large amounts of building materials, such as steel and aluminum and imported computer chips, which are expected to become much more expensive. Trump said his administration is also working on new rates on chips, which also received an exemption from the reciprocal land tariffs for now. According to experts, a rapid rate of data center construction is critical that the US stays before China in the AI ​​race. China is in the back of the manufacture of advanced chips and models, but has historically continued in critical industries by quickly building infrastructure with the government’s funding. “It’s only going to add costs at the moment we try to build as quickly and as wide as possible,” says Vivek Chilukuri, a senior fellow focusing on technology in the Center for a New American Security, a thinking of national security. “It’s just not useful for our AI leadership.” Energy Trump released the exempt energy products of his reciprocal rates on Wednesday – and when he smuggled 25% rates on Canada on Fentanyl, he only applied 10% duties to energy products. But a critical sector of the energy industry is still experiencing pain: liquid natural gas, which is essential for the president’s “energy dominance” strategy that we seek to spread our gas to markets around the world. While Trump released the import of natural guests from the reciprocal rates, he did not include a cut-off exclusion for many of the components used to build a multibillion-dollar export facilities, four of which are planned for the Golf Coast. There are still open questions about whether the administration will provide exemption for specialized components for these facilities, says an industry official, many of whom are currently being manufactured abroad. Write to Amrith Ramkumar at amrith.ramkumar@wsj.com and gavin Bade at gavin.bade@wsj.com Catch all the business news, Market News, news reports and latest news updates on live coin. Download the Mint News app to get daily market updates. More Topics #Donald Trump #Tariff Hike Mint Special