The administration of U.S. President Donald Trump is said to be considering a tax deduction for exporters as a measure to alleviate the impact of its tariff policy on domestic corporations. This is interpreted as an implicit acknowledgment by the administration that Trump's tariff policy could harm U.S. corporations.
According to Bloomberg News on the 8th (local time), this tax deduction aims to ease the situation where U.S. manufacturers face retaliatory tariffs in overseas markets, with discussions ongoing to implement it by the end of the year. Some officials noted that it could also apply to service export corporations. However, it must be approved by Congress, and the specific details are still in the coordination stage.
President Trump and Secretary of the Treasury Scott Besant have not yet received an official report on this plan, and there are reportedly mixed opinions within the administration.
The Treasury Department stated, "Discussions are in the early stages, but Secretary Besant fully agrees with President Trump's 'America First' economic agenda," adding, "This will also influence his stance on all matters that are proposed to him." The White House did not respond to a request for comment.
The discussion of tax deductions for exporters is seen as an attempt to minimize the internal repercussions following President Trump's announcement that he would impose high tariffs uniformly on most countries worldwide. It is interpreted as a signal that some economic advisors within Trump's camp are unsure about the effectiveness of the trade policy.
In fact, some trading partner countries immediately reacted against the U.S. tariff measures, and global financial markets showed the fastest decline since World War II.
Last week, President Trump announced a mutual tariff of 34% on Chinese imports, and China also warned of retaliatory tariffs on U.S. products at the same rate. Trump then warned that starting from the 9th, he would impose an additional 50% tariff on China, raising the stakes in the trade war. The European Union is discussing countermeasures against this.
The tax deduction program is expected to serve as a type of subsidy for U.S. export corporations that will struggle due to retaliatory tariffs. However, in the short term, it is anticipated that importing companies will bear higher import expenses, which may hit them the hardest.
President Trump's economic team is also reviewing a tax deduction plan to support importing companies, but it is said to be more complex to design.
President Trump claims that "tariffs will encourage production in the United States," but economists warn that it could take years to rearrange the global supply chain and that the world economy could fall into a recession in the short term.