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.
ReplyDeleteActually, Tesla CEO, Elon Musk, yesterday warned about retaliation about tariffs.
DeleteIt might all blow up in his face!
ReplyDeleteLess money related to tariffs will be collected by the United States government.
DeleteI don't know what the EU will do. I just keep watching that all of Ursula von der Leyen's efforts fail.
ReplyDeleteI am curious to see how the EU will resolve this political dispute next week.
DeleteBoycott US products!
ReplyDeleteI agree on this!
DeleteI don't think Trump is taking a good approach. Europe should have a common voice to show its strength.
ReplyDeleteHappy Sunday :)
I can kinda see where he is coming from to make HIS country great again regardless of others. We used to manufacture so much in Scotland and the UK but now everything is produced overseas as it cheaper. Cheaper sadly doesn't mean better. And I'd have to say things don't last as long as they used to!!!! They aren't made to last now. Such as TVs, fridges, freezers and other electrical good. I have my old Atari St 520 from 1988 and it still works. Yet my Desktop and laptop computers both died after 5 or 6 years!!
ReplyDeleteI've said this about Scotland, we need to focus on making our country good again. It is in turmoil and so many people are suffering. It is that bad, my partner and I have discussed leaving Scotland.
"Have a nice weekend!"
ReplyDeleteI did thank you, spent time with family.
All the best Jan
https://thelowcarbdiabetic.blogspot.com/
A trade war with the EU could hurt both sides. Higher tariffs might boost U.S. manufacturing but also raise costs for consumers. Plus, if companies move production home, the government loses tariff revenue, which could increase debt. Meanwhile, China’s manufacturing dominance isn’t going anywhere.
ReplyDeleteHappy Monday, Giorgio!