Trump's Proposed 20% Tariff Plan: White House Drafts Broad Trade Policy

Trump's Proposed 20% Tariff Plan: White House Drafts Broad Trade Policy

The Washington Post (WP) reported on April 1 that White House advisors have drafted a proposal imposing a 20% universal tariff on most imports as part of former President Donald Trump’s reciprocal tariff policy initiative.

Trump's Aggressive Trade Stance

This proposal comes ahead of the April 2 announcement of Trump’s reciprocal tariff policy. While the draft is not yet finalized, multiple tariff options are being discussed.

Trump has recently reinforced his hardline trade stance, stating on March 26 that the tariffs would be lower than what other countries have imposed on the U.S. for decades.

Targeting the ‘Dirty 15’ and Beyond

Former Treasury Secretary Scott Mnuchin previously identified 15 countries with large trade surpluses and trade barriers against the U.S., calling them the ‘Dirty 15’—potential targets for reciprocal tariffs. Some analysts speculated that only select countries would face these measures.

However, recent reports suggest Trump has urged even more aggressive action, instructing his team to explore higher tariffs on nearly all U.S. trade partners. In response, White House advisors have prepared a plan to apply a 20% blanket tariff on most imported goods.

Potential Revenue Redistribution & Sector-Specific Tariffs

The Trump administration is also considering using revenue from these tariffs to provide direct payments or tax rebates to U.S. citizens. Additionally, critical minerals and related products may be subject to separate, industry-specific tariff policies.

Final Decision Pending

The WP report notes that the universal tariff proposal has not yet been finalized. These measures could be reflected in the National Trade Estimate (NTE) report, which the U.S. Trade Representative (USTR) is set to submit to the President on April 1.