

Tariffs Aren’t Going Away | PIMCO’s Policy Head Libby Cantrill on Trade and Tax Environment In New U.S. Administration
24 snips Apr 23, 2025
Libby Cantrill, Managing Director and Head of Public Policy at PIMCO, shares her insights on the complexities of U.S. trade and tax policy. She predicts that while some tariffs may decrease, the 10% tariff will remain a baseline, especially regarding China. Cantrill discusses the challenges of trade negotiations, the risks of stagflation on the economy, and the interplay between tariffs and tax policies. She also touches on the legal implications of President Trump's use of tariff powers, emphasizing the ongoing significance of these trade dynamics.
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Trump's Tariff Philosophy
- President Trump has long believed tariffs are a valid tool for addressing trade imbalances and unfair trade practices.
- He sees tariffs both as leverage in negotiations and as an end goal to reduce the U.S. trade deficit.
Durability of Baseline Tariffs
- The 10% baseline tariff on all countries is likely to remain stable and durable.
- Peak tariff levels may have passed, but elevated tariffs, especially on China and sector-specific goods, will persist.
Trade Concessions Varied & Cosmetic
- Trade concessions sought by the Trump administration vary by country and often include military base fees, agricultural tariffs, and currency concerns.
- Durable trade agreements are unlikely soon; concessions may be more cosmetic than substantive initially.