There are several rumors of what we have to expect from US trade policy starting in January. US President-elect Donald Trump has mentioned that he wants to impose a 35% tariff on Chinese imports, re-negotiate or pull out of NAFTA, and withdraw from TPP. This week, we take a look at the powers of the US president when it comes to trade agreements and tariffs. What is possible, impossible?
- Impose a tariff on imports: Yes, but only for 150 days and only as much as 15%
- Renegotiate NAFTA: Yes, with the agreement of other parties (and Canada and Mexico have indicated their willingness to listen)
- Pull out of NAFTA: Yes
- Source: NAFTA, Article 2205
- Withdraw from TPP: Yes
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