GENEVA, April 17. /TASS/. The aggressive tariff policy of US President Donald Trump is not aimed at restoring the country's industrial might, but at exerting pressure on creditors to get them to restructure the US’ $36.2 trillion debt, esteemed German economist and Professor Hans-Werner Sinn said.
He posited that at first glance, it would seem that the introduction of duties is only aimed at building up the US domestic manufacturing sector. In fact, the point of these measures is to "put pressure on US creditors" and "restructure its debt."
According to the economist, who is also former president of the Munich Institute for Economic Research (Ifo), this can be achieved by swapping bonds that mature soon for 100-year bonds with a significantly lower yield.
"This would be a huge financial relief for the United States, which currently spends about 11% of its budget on interest payments," Zinn said during a lecture at the University of Lucerne, as quoted by the press service of the Institute for Swiss Economic Policy.
Immediately after the inauguration of US President Donald Trump on January 20, the country began a large-scale audit of state budget expenditures. According to businessman Elon Musk, who heads the department of government efficiency, he expects to cut Washington's government spending by $2 trillion. The Congressional Budget Office believes that the debt could exceed $50 trillion in 2034.
On April 2, Trump announced the introduction of customs duties on products from 185 countries and territories. Universal tariffs of 10% came into force on April 5, individual tariffs on April 9. Since April 3, the US administration has imposed customs duties of 25% on all imported cars.
On April 9, Trump announced he was suspending the additional import duties imposed on some countries and territories for 90 days. The White House explained that the pause is related to trade negotiations, during which a "universal tariff of 10%" will be in effect.
At the same time, the US president raised tariffs on Chinese products to 125%. Taking into account the previously imposed tariff of 20% for the allegedly insufficient efforts of the governments of Canada, China and Mexico in combating the smuggling of fentanyl into the United States, the total duty on goods from China currently reaches 145%.