Trump's massive tariffs disturb the global trade
Trump's massive tariffs disturb the global trade
Despite the shaken financial markets, threats to retaliation measures and the pressure of some of President Donald Trump's greatest supporters to persuade him to depart from his striking economic policy. His administration raised numerous new “mutual” tariffs on dozens of American allies and opponents on Wednesday, with the aim of restoring fairness and strengthening American production.
new tariffs on Chinese goods
Waren from China, by far the biggest goal, are now subject to an inch of at least 104%. Trump even higher tariffs as originally announced, after Beijing did not move in from his promise, 34% on Tuesday Remature tariffs.
unreciprocated customs sets and other trading partners
The customs sets that are not really mutual, calculated by the USA with the USA by its exports in the USA was shared and multiplied by 1/2. They range from 11% to astonishing 50%. Apart from Mexico and Canada, the other most important trading partners of America were not spared. The EU received a custom of 20%, China 34%, Japan 24%, Vietnam 46%and South Korea 25%.
The effects on consumers and companies
These new customs sets come into force only days after Trump's introduction of a universal customs of 10% of all imports of other countries, with the exception of Mexico and Canada. (The 10%rate is not also charged for countries on the list of mutual tariffs. At Japan, for example, the duty rose on Wednesday rose by 14%, since the 10%were already imposed on the weekend.)
"Our country and its taxpayers have been cheated for over 50 years. But that will no longer happen," said Trump last week when the announcement of these tariffs, which the country has seen for over a century.
global effects and forecasts
Hours before the tariffs came into force, Trump expressed similar comments and added that other countries, especially China, "let us down".
Now Americans and people around the world will pay a high price. The importers, not the countries that Trump targeted, will pay the tariffs, and these costs are often passed on to wholesalers, retailers and ultimately consumers. But companies abroad will not be spared either, since Americans will probably receive goods from countries with lower customs tariffs.
an impending recession and stagflation
Ultimately, Trump's tariffs threaten an escalation of the global trade war. China has already announced that it will reinforce his retaliation against the United States. The Chinese Ministry of Commerce said on Tuesday that the country would "fight to the end".
Meanwhile, Trump explained in a contribution to Truth Social on Tuesday that "China also wants to do a business urgently, but do not know how it should be started".
With several trillion dollars in market value that has disappeared from the US shares since April 2, the "liberation day", the likelihood of global recession has increased. JPMorgan has increased the likelihood of global recession by the end of the year to 60% from 40% if Trump implemented his full plan, which he outlined last week.
A look back at past trade practices
Trump's tariffs have met the second largest economy in the world, China. When Trump's first term ended, the average customs set for Chinese goods was 19.3%, according to an analysis of the Peterson Institute for International Economics.
The bid administration maintained most of Trump's tariffs and added additional additional, which increased the average set to 20.8%.
Both China and the United States have benefited from commercial decades. But since Trump's first term in office, the United States has started looking for other countries for goods that were previously imported from China.
Mexico became the main benefit and China surpassed in 2023 as the most important source for imports, and kept this position last year.
The effects on the US economy
The mutual tariffs threaten to damage domestic industries and are likely to lead to layoffs.
If Trump could not do his tariffs, which he repeatedly swore, could not be undone, a large part of the economic damage could be undone, "but certainly not everything," says Colin Grabow, Associate Director at Herbert A. Stiefel Center for Trade Policy Studies at the Cato Institute.
"Trump's actions have significantly damaged confidence in the United States, not only because of the weak reasons for the tariffs, but also because of the violation of long -standing free trade agreements with the trade partners of the USA," he said.
"Companies need a certain level of security to operate, and Trump's chaotic approach does not offer."
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