US unlikely to be spared dire impact of higher tariffs - analysts
Some economic analysts say the US is unlikely to be spared the dire impact of the higher tariffs as the world anticipates the worst from President Donald Trump’s reciprocal tariffs.
US President Donald Trump delivers remarks on reciprocal tariffs as US Secretary of Commerce Howard Lutnick holds a chart during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington, DC, on 2 April 2025. Picture: Brendan SMIALOWSKI/AFP
JOHANNESBURG - Some economic analysts say the US is unlikely to be spared the dire impact of the higher tariffs as the world anticipates the worst from President Donald Trump’s reciprocal tariffs.
After confirming plans to go ahead with a 25 percent levy on imports into the US from India, plus an undisclosed penalty for its trade policy, Trump looks to be ready to make the final call on other countries as well.
This includes South Africa and China.
While exporters brace for impact, analysts say the US may not be in the all-clear either.
Director at XA International Trade Advisors, Donald MacKay.
"It seems impossible that it can’t have an impact. We'll have to wait and see how it plays out but for many of the products that he’s tariffing, the US is not even producing those products. The most obvious here is the massive aluminium tariffs. The US is a modest producer of aluminium, so the idea that you could put a 50% tariff and get immediate investment seems to be outrageous. Everything that contains aluminium will therefore become more expensive, and I would expect to see versions of that flowing through the US economy all over the place."