Trump administration to narrow tariff scope on April 2

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According to the Wall Street Journal (WSJ), the White House is narrowing the scope of the tariff strategy expected to be announced on April 2nd, instead of a comprehensive tariff wave. The Trump administration is currently focusing on a strategy targeting countries with a large proportion of trade with the US, rather than applying tariffs across the board. Meanwhile, sector-specific tariffs have been modified and are not certain to appear in the upcoming announcement. On April 2nd, the Trump administration is expected to announce a retaliatory tariff plan as a measure to punish trade barriers from other countries, including long-standing partners. Previously, President Trump emphasized applying tariffs to critical sectors such as automobiles, pharmaceuticals, and semiconductors. However, according to internal sources, this plan is being reviewed and may not be as widely implemented as initially planned. Instead of a simultaneous attack, the White House is focusing on about 15% of countries maintaining long-term trade imbalances with the US. Last week, Finance Minister Scott Bessent stated that countries in this group would be subject to higher tariffs, while other countries would face modest tariffs. The targeted partners are expected to include G-20 countries, as well as Australia, Brazil, Canada, China, the European Union (EU), India, Japan, South Korea, Mexico, and Russia. These countries were specifically mentioned in the US Trade Representative's announcement last month. This approach represents a significant shift from the February plan, when Trump proposed a three-tier tariff model. However, the US leader has abandoned this proposal and is now oriented towards applying individual tariffs to each country. Although the scope is more limited than initially planned, the new plan could still push tariff levels to unprecedented heights in decades. Additionally, with emergency economic authority, Trump can potentially accelerate the implementation process. Currently, the parties involved continue to review and have not made a final decision.

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