US President Donald Trump announced on Wednesday that he had allowed a 90 -day pause and a reduced tariff 10 percent in three months in the middle of a market break -up caused by a trade war.
However, President Trump announced that the US increased to 125 percent to Chinese tariffs. “No other president would do what I did. Someone had to do that.” Trump justified the reporters on Wednesday in the US.
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Notification means delay. However, worries remain. Trump’s block came the day after the extensive tariffs of his administration against about five countries, including India, came into force, raising trade and concerns about the global economic recession.
Who advises Trump about tariffs?
In December 2024, Donald Trump, the then elected President, he chose Stephen Mirana as the chairman of his Council of Economic Advisors (CEA).
CEA advises the President about economic policy and includes three members, including the chairman. The Council helps in the preparation of the annual report, which provides an overview of the country’s economy, reviews federal policies and programs and issues the recommendations of economic policy.
Miran, an advisor to the Ministry of Finance in Trump’s first administration, is often called the “mind” behind Trump’s economic policy, including tariffs.
Miran claimed that the fears of the business tariffs that Trump had imposed and delayed were exaggerated. “Tariffs deserve some attention
“One of the reasons why economic consensus about tariffs is so bad is that almost all models that economists use to study international trade do not expect any trade deficits, or assume that the deficits are short -term and quickly repaired through currency adjustments.”
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According to standard models, trade deficits cause the US dollar to weaken, reducing imports and increasing exports, and eventually erased by a business deficit, Miran said.
“If this happens, tariffs may be unnecessary, because the trade will match over time and in this perspective the tariffs can only get worse things,”
Who is Stephen Miran?
Miran graduated from the University of Boston in 2005 and studied economics, philosophy and mathematics. In 2010 he received a doctorate in economics at the University of Harvard, where he was a student of Martin Feldstein, a prominent American economist who chaired CEA during the US President Ronald Reagan at the age of 80.
In the “User Guide for the Restructuring of the Global Trading System”, Miran pointed to Trump’s tariff application to China in 2018–2019, which he claims “has passed with a small recognizable macroeconomic consequence”.
Miran was the head of the strategist in the field of global investment in the value of several billion dollars, Hudson Bay Capital Management before he became 32. Miran is also a co -founder of the Amberwave Partners asset management and an additional member of the Manhattan Institute.
Miran worked as an advisor to economic policy for the Ministry of Finance from 2020 to 2021 during the term Steven Mnuchin as the Secretary of the Ministry of Finance.
User manual
In a report published by the Hudson Institute in November entitled “User Guide for the Restructuring of the Global Trading System”, he claimed that the root of the economic imbalance lies in the persistent overvaluation of the dollar that prevented international trade.
No other president would do what I did. Someone had to do it.
He laid several tariffs that could be applied according to the second Trump Administration and claimed that they could still be effective despite some potential negative impacts.
Also read | Trump transforms the tariff war to clear high bets with China
In Miran essay, he points to Trump’s tariff application to China in 2018-2019, which he claims “has passed with a small recognizable Macroeconomic consequence”
“An effective customs rate on Chinese imports increased by 17.9 percentage points since the beginning of the trade war in 2018 to the maximum customs rate in 2019,” Miran said in essay.
(Tagstotranslate) Trump’s tariffs
