Since Trump got in office more than two months ago, he has been talking about restoring U.S.' manufacturing sector by rising tariffs on foreign goods. According to Trump's plan, tariffs can help boost production at home by making foreign goods more expensive.
Obviously, if businesses were to make goods in the U.S., they wouldn't pay tariff for them. But if companies do as Trump asks, then the U.S.' government can't raise tariff revenue from them. Consequently America's public debt could rise, and American people could pay a high price for Trump's reciprocal tariffs. Not to mention of a country's ability to produce a particular good, such as wine, spirits, and food, at a lower cost compared to other nations.
On the China front, while these measures may trigger concern over their economic impact, they are unlikey to undermine Beijing's long-term manufacturing dominance.
...idiots are in charge of the US at the moment.
ReplyDeleteInflaction rate will rise sharply as a consequence of their wrong policy.
DeleteAll the foundations established in the west are abolished just in one month
ReplyDeleteThis changes everything, as America's top trading partners will never forget that Washington is not reliable.
DeleteI ask: what will Europe do?
ReplyDeleteThere are only two tools: negotiation or retaliation.
DeleteLa guerra comercial , se va agrandar. te mando un beso.
ReplyDeleteIt might all blow up in his face!
ReplyDelete