Tariffs have been a hot topic, leaving many wondering what will happen next. One smart economist has an interesting idea. They think Trump might have a clever plan up his sleeve. This plan could keep tariffs at a reasonable level. It would give countries time to open up their economies. This way, everyone can adjust to the new trade rules without too much trouble.

The economist suggests keeping tariffs at 30% for China and 10% for other countries. This would last for a year. During this time, countries could work on removing other trade barriers. This approach could ease the uncertainty that has been hanging over businesses and consumers.

Right now, there is a 90-day pause on Trump's "reciprocal tariffs. " This pause was supposed to give time for negotiations. But so far, not many deals have been made. The U. S. has agreements with the U. K. and a short-term deal with China. But talks with other big trading partners are still ongoing.

The economist believes extending the deadline by a year could be a good move. It would give countries and businesses more time to get used to higher tariffs. This could also boost business planning, employment, and financial markets. Plus, it would bring in a lot of money for U. S. taxpayers. So, it could be a win-win situation for everyone.

This idea is interesting because the economist had previously warned about the dangers of tariffs. They had said tariffs could cause a recession. They also mentioned that the trade war between the U. S. and China could hurt small businesses. But now, they are considering a different perspective.

Other experts also think tariffs might not be as bad as feared. They expect tariffs to settle around 10%-12%. This range is low enough to have a small impact. They also believe markets will focus on the future rather than near-term tariff impacts. This could lead to a positive outlook for the economy.

The Federal Reserve is also watching the situation closely. They are in wait-and-see mode because tariffs can affect inflation. Some policymakers think a rate cut might be needed soon. Others believe it's too early to tell. But one thing is clear: tariffs are a big part of the economic puzzle right now.

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