Your comprehensive collective bargaining thread: costs and time overview

Your comprehensive collective bargaining thread: costs and time overview

President Donald Trump announced that it would introduce tariffs next weekend, hoping that the taxation of American companies for imported goods ultimately punishes the countries, producing the products, the Americans ask and bring them to the negotiating table. But this risky undertaking could easily have a negative impact on American consumers and the economy.

tariff as an economic instrument

In the United States, tariffs usually serve to a limited but important purpose: they should promote the American economy by incentivizing the purchase of goods produced in the USA. This happens by effectively imposing high taxes on American companies that buy foreign products.

Trump and the tariffs

Trump has long praised Zölle as an effective economic policy. In a speech, he recently called "customs" the fourth word in the dictionary, behind "God", "love" and "religion". Again and again Trump also repeats the misleading claim that former President William McKinley, known as the "customs shot", initiated an era of American prosperity by collecting tariffs. Although the US economy grew strongly in the 1890s, this was primarily due to almost unrestricted immigration and other factors.

The goals of Trump's tariffs

Trump wants to use Zölle for three main reasons: to generate income to create a balance in retail and to persuade rival -ended countries to negotiate. In view of the massive deficits in the USA, Trump said that the tariffs would serve to compensate for lost income. He predicted that the tariffs would bring hundreds of billions-possibly even trillions of dollars.

Trump regularly criticizes American trade policy and speaks of hundreds of billions of dollars that are lost to neighboring countries. His representation of the trade margin, which represents the difference between export and import, conveys a distorted image of a decisive mechanics of the US economy-the possibility of acquiring services and products from abroad.

When do the tariffs come into force?

Trump and his administration have clearly communicated: Customs in any form should come on Saturday. However, there was contradictory information about which tariffs will be announced this weekend. During a ceremony in the Oval Office on his first day of the office, Trump promised to introduce a uniform custom of 25 % on Mexico and Canada from February 1, and the following day he announced 10 % inches to all goods from China.

products that could be affected by tariffs

When Trump sticks to tariffs, you will probably focus on pharmaceuticals, steel and computer chips. However, there could also be wider tariffs that affect many everyday purchases and let prices rise, since Mexico, China and Canada are the most important trading partners in the United States. Experts warn that the tariffs could greatly increase the costs for cars, food, gas and alcoholic beverages.

how much more will I pay?

economists largely agree that tariffs lead to inflation. Importing companies pay the tariffs, and they usually pass on these costs in the form of higher prices to consumers. Estimates of the Peterson Institute for International Economics indicate that Trump's aggressive customs increase program could cost American consumers more for practically everything - from imported sneakers and toys to food.

Overall, it remains to be seen whether and when Trump actually implements the promised tariffs and what effects they will have on the American economy. Until then, Canada hopes to avoid tariffs through increased cooperation measures with the USA.