Trump's tariff threat paves way for bitter global trade war | Donald Trump

Donald Trump's threat to impose high tariffs on goods imported into the United States has set the stage for a bitter global trade war, trade experts and economists say, with consumers and businesses warned to prepare at high costs.

The president-elect announced Monday evening his intention to impose tariffs on Canada, Mexico and China on all their exports to the United States until they reduce migration and the flow of drugs into the country.

As officials from all three countries rushed to respond, Keith Rockwell, former director of the World Trade Organization, predicted that Trump's decision could trigger a trade war. The United States exports goods worth hundreds of billions of dollars to these countries, he said. Anyone expecting them to remain passive and not fight back hasn't been paying attention.

China quickly suggested that both sides would lose if economic tensions escalated. No one will win a trade war or a tariff war, Liu Pengyu, a spokesperson for the Chinese embassy in Washington, wrote on X, formerly Twitter. Chrystia Freeland, Deputy Prime Minister of Canada, and Dominic LeBlanc, Minister of Public Safety, touted the country's balanced and mutually beneficial economic ties with the United States.

Hours after Trump made the announcements on Truth Social, his social media platform, ING economists released a study estimating that his broader campaign proposals on trade included a universal tariff of between 10 and 20% on all goods imported from abroad, and a tariff of 60%. tariffs on all products from China could cost each U.S. consumer up to $2,400 per year.

This potential increase in consumer costs and inflation could have broad economic implications, particularly in an economy where consumer spending accounts for 70% of total activity, said ING's James Knightley.

It's unclear whether Trump, who has described tariffs as the most beautiful word in the dictionary, will follow through on this plan. Tariffs paid by the company that imports foreign products are not popular with voters, even Trump voters. A Harris poll carried out for the Guardian found that 69% of people think they will increase the prices they pay.

And although he threatened to impose universal tariffs during his campaign for the White House, this proposal for a 25% tariff on all goods from Mexico and Canada and a tariff of 10% on China, in addition to existing duties, is more targeted.

Trump's statements clearly herald the dawn of a new era of U.S. trade protectionism that will draw many of the United States' trading partners into its purview, said Eswar Prasad, former head of the IMF's China division. Such tariffs will have a disruptive effect on U.S. trade as well as international trade, as countries around the world work to mitigate the impact of U.S. tariffs on their own economies and attempt to find solutions. ways to escape it.

On the campaign trail, Trump and his allies argued that such measures would help strengthen the U.S. economy and make America rich again. Many economists have taken a different view, warning that drastic tariffs would raise the price of goods for U.S. consumers and risk prompting other countries to retaliate, thus hitting U.S. companies exporting goods to the world .

But in his Tuesday announcements, Trump did not focus on the economic benefits the tariffs would bring. Instead, he blamed Mexico and Canada for the ridiculous open borders that he said were causing an immigration crisis, and China for the massive amounts of drugs, particularly Fentanyl, arriving in the United States. and pledged to impose tariffs on these countries until they address his concerns.

Trump apparently views tariffs as a widely used tool to combat a variety of harmful external factors that negatively impact the U.S. economy, society and national security, noted Prasad, now a professor in Trade Policy at Cornell University.

ignore previous newsletter promotion

Subscribe to Business Today

Get ready for the workday, we'll give you all the business news and analysis you need every morning.

Privacy Notice: Newsletters may contain information about charities, online advertisements and content funded by third parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.

after newsletter promotion

Billionaire hedge fund manager Bill Ackman, who supported Trump, wrote on the aim of respecting its commitments. “America First” political strategy.

Making such announcements on social media is a great way for Trump to effect foreign policy changes before he even takes office, Ackman said.

As Trump crafts his broader trade strategy, Rockwell, a former WTO member, said a universal 10% tariff would be more manageable than a 20% tariff. But if you increase it by 20%, it creates a different dynamic, he said. You're going to see much, much less demand for these products.

There will also, undoubtedly, be retaliation, he added. European officials have drawn up their list, he said. It's Brussels' best-kept secret, but it's established.

Countries will retaliate by imposing tariffs on political points of tension, Rockwell predicted. Under the last Trump administration, the European Union targeted U.S. exports, including Harley-Davidson motorcycles, Levis jeans and Kentucky bourbon.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: cgurgu@internetmarketingcompany.BizWebsite: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos