Trump Tariffs: For the US President, pain is incoming from both sides. While Trump might care little about the tariff impact imposed on other nations, the domestic heat has perhaps pushed POTUS to bring some relief to US exporters. For instance, the Trump administration is now considering to introduce a new exporter tax credit for the country's very own manufacturers who might be vulnerable to retaliatory tariff play by other nations.
As per a report by Bloomberg, US officials are weighing the idea of introducing a new tax credit for exporters as the White House's own tariff policies might be hurting American businesses.
The US government is considering offering a rebate to American manufacturers at the end of the year, according to sources cited in the report. This will ease the financial burden on US entities and encourage them to continue exporting their goods abroad despite the added costs.
These tax credits might also be imposed on companies that export services. However, no official has yet given any concrete announcement on the same.
“While discussions on specific provisions are still early, all of Secretary Bessent’s thinking on tax issues is backed by his full support for President Trump’s America First Economic Agenda, and this will inform his ultimate support – or lack thereof — for any items that are proposed to him,” the Treasury Department reportedly said in a statement.
Recession Fears Loom
On Monday, the US markets witnessed a sharp plunge as concerns around trade wars and the consequent impact weighed down investor mood. Wall Street witnessed one of the biggest single-day declines.
The Dow Jones Industrial Average crashed by over 3% before easing some pain. In the last 5 trading sessions, the index has declined by more than 9%. The tech-heavy index, Nasdaq, took a similar trajectory and experienced a fall of over 9.4%.
The market downtrend continued despite Trump asking investors not to panic.
