The world economy, beset with uncertainty for three months over Donald Trump’s on-again-off-again tariffs, is about to get more clarity as the US president’s deadline for trade deals arrives on Wednesday.
That’s when the 90-day reprieve from Trump’s so-called “reciprocal” levies ends, clearing the way for the protectionism he thinks will narrow US trade deficits and spark a manufacturing revival. The wielding of unilateral tariffs is upending a system that for decades encouraged lower barriers to commerce under rules enforced by the World Trade Organization.
The US president isn’t just ripping up the old playbook for trade alliances. Trump’s tariffs will also help fill Treasury coffers at a time when investors are worried about the sustainability of the nation’s debt — particularly after Congress sealed much of the president’s economic agenda in a $3.4 trillion tax cut and spending package.
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