Trump Considers Global 20% Tariff to Promote 'Big and Simple' Trade Policy

After declaring a "big and simple" approach, Trump is said to have urged his advisors to apply global tariffs of up to 20%, expanding the higher tariffs to more countries. A previous report suggested that Trump is considering implementing more drastic measures to change the U.S. economy. In response, his administration is rushing to finalize the details of the new tariff program ahead of the self-imposed deadline of Wednesday, April 2. Trump considers a global tax rate of 20% as one of the "simple" policies that need to be implemented. Investors are bracing for potential market volatility as an important week for the economy begins amidst reports that President Donald Trump's trade war could escalate further. Discussions about Trump's tariff policy have intensified since the weekend, raising concerns that new trade measures could exacerbate economic tensions. According to sources close to the negotiations, an important debate is whether to restore Trump's campaign promise regarding the implementation of a global tax affecting most of the United States' trading partners or to apply a custom tax as he has recently proposed. In his campaign, Trump previously proposed a global tax of 20% on most of America's trading partners, and reports indicate that he believes the simplicity of this policy makes it difficult to mitigate its impact. Previously, Fitch Ratings warned that if Trump implements his entire trade agenda, the average effective tariff rate in the United States could rise to 18% - the highest in 90 years. This indicates that the final tariff strategy could be broader than the "15 dirty countries" plan of Treasury Secretary Scott Bessent, targeting only the worst 15% of the United States' trading partners. The White House has yet to respond to the request for comment. Investors are increasingly worried about Trump's trade policy. In February, President Trump signed a presidential memorandum directing a comprehensive plan based on reciprocal tariffs principles to restore fairness in the United States' trade relations. According to him, this idea is very simple. Specifically, the United States will apply "no more, no less" tariffs on trade partners, just as they do with U.S. goods and services. Therefore, investors have been paying attention to the long-awaited "Tax Day" announcement from President Donald Trump on April 2, as important details of the plan, including a 25% tariff on imported cars, have been leaked to the media. However, the final announcement and whether this announcement will change over time is still unknown due to recent developments. According to Treasury Secretary Scott Bessent, the new measures will target the "15 dirty countries" with the largest bilateral trade surpluses with the United States. At that time, more than two-thirds of the U.S. import volume could be affected. Furthermore, this figure does not include continuous tariffs on specific products such as automobiles, semiconductors, and pharmaceuticals. Alongside the global scope, these proposals will be the most significant trade restrictions in the years following World War II. Assessing the impact of these measures will be difficult due to the complexity of the proposals and the inevitable retaliation from the United States' trading partners.