Donald Trump tariffs: Opening salvos fired in trade war
Just one day ago, Donald Trump threatened to conduct a number of trade wars with Canada, Mexico and China, which will enable the global economy into an unknown area.
Twenty -four hours later, our tariff (or taxation) of the closest neighbors and trading partners in the United States lasted for 30 days.
However, 10 % of all goods imported from China are underway, and Beijing has responded. So, what are the potential economic consequences of these open SALVOS, which may become a wider trade war?
Since the first term of Trump, China has levied a large number of US tariffs. However, from the White House, from each product imported from China (from toys to mobile phones to clothes), the nature of today’s new taxes is new and important.
Tariff revenge promised by Beijing -In new tax collection of agricultural machinery and some cars imports from the United States, it is much less scanning. However, revenge enabled us to enter the field of TIT-TAT operations. There, the country who encountered tariffs felt that there was no choice, and we could only look back to our citizens that we could not be promoted by foreign power.
This is Dictionary definition of trade war -In economic historians warned that they tend to generate their own motivation and may be out of control quickly.
Trump uses almost all reasons Under the tariffs under the sun, from increasing tax revenue to promoting the manufacturing industry and re -balanced trade. But in recent days, it has confirmed that the new president regards them as a powerful way for other countries to do what he wants to do.
When it initially refused to accept the national airlines that were deported in the United States, he threatened to have a large -scale and punitive tariffs on Columbia, but when Boge was acquiesced, he canceled the threat.
The White House may also point out the reaction of Mexico and Canada yesterday because the evidence tariff threat caused a result. He threatened to ride His own North American Free Trade Agreement Unless these countries are tightened in border control. Although compared to what they had done yesterday, yesterday, how many additional doubts of the actual commitment of border security.
However, the White House that uses tariff threats in this way is that if other countries do not retract-or have not reached an agreement-Trump is likely to feel that he has no choice but to follow or loses all the risks of all reputation. Moreover, targeted countries may feel that it must respond with their preparation countermeasures, even if they are unwilling to respond.
This high-risk dynamics-in the atmosphere of dislocation and political pressure, things may be out of control. This is why many analysts and economists have shown all the comforts of the situation with Mexico and Canada this week Essence
Another reason for many economists worrying about Trump’s intimidation tariff diplomacy is its potential for business investment and confidence. There is one American car company In -integrated industrial foundation In the United States, Mexico and Canada. Auto parts have crossed these boundaries many times during the assembly of vehicles.
For these businesses, 25 % of the tariffs on each of these movements will be disastrous. These North American tariffs have stopped, but it is difficult to see us or Canadian car executives. They are committed to further investment in these cross-border supply chains-maybe in the next many years.
This will have a negative impact on their productivity and employees in all three countries. Many economists’ point of view is to have cross -border supply chain stores, which makes the productivity of these companies higher than that, which makes the salary of American workers relative to where it is only in the United States.
These identical effects are suitable for global. In view of Trump’s tariffs on the European Union, how many American companies may invest in Europe-vice versa?
Vietnam and Malaysia and other countries have benefited a lot of US tariffs imposed on China from Donald Trump’s first presidential term, because multinational companies shifted manufacturing from China to its territory to avoid taxation and continue exporting to the United States. Essence But what if Trump is now threatening to tariffs on them?
The huge uncertainty of Trump’s threat to the global economy-even if they are not always transformed into actual new taxes, they may have caused damage.
