Barely two weeks after Donald Trump returned to the White House, four associates from the United States forced the US President’s for threat of danger in danger and other punitive measures.
Mexico and Canada promised to increase security on their US borders to deal with illegal stay and drug trafficking this week. He won 30-day reprive at Trump’s wide 25% Tarats, announced last weekend
Columbia, which was threatened with taffs and restrictions, quickly U-Turned after refusing to accept the exile from the US. Meanwhile, Panama has made concessions for Trump on the Panama Canal, an important shipping waterway that connects the Atlantic with Pacific in Central America.
On its face, the US President quickly presented his muscles and his goals. However, Italian economist Marco Bubi feels that Trump’s tariff strategy is being “wrongly” rolling out and has provoked only a limited response from colleagues.
“That what [Trump] Has been extracted from a danger country so far [Canada and Mexico] As unilateral concessions are largely symbolic, “Batti, a former Director General for Economic and Financial Affairs, told DW.
Hey, new border measures promised by Mexico and Canada would not be sufficient to prevent the flow of deadly drug fennels or enter the US uninterrupted migrants.
Cost of economic costs
The economic impact on the US with the proposed Tarafts of Trump along with the target countries has well documented. Tariffs act as taxes on effectively imported goods, so any new duty almost certainly wants to cause high prices for consumers.
,[Trump’s tariffs] Globally, they are creating economic uncertainty and it is going to be very harmful from the point of view of development and prosperity, “Batti said.
Along with tying Canadian and Mexican iconomies into the recession, Tram’s tariff threat is estimated to increase American inflation over a percentage more than one percent, leading to the ability to capture or enhance the interests of Federal Reserve.
Tariffs can disrupt the production supply chains installed especially between Canada, the US and Mexico.
Car production in North America is integrated deeply with vehicle parts that cross borders several times during production. In each stage, tariffs can significantly increase the prices of the vehicle and if it causes pain in demand, some economists feel that job loss will be inevitable.
“Trump is very much of an old school,” Rolf Langhemmer, a researcher from the Cail Institute for the World Economy (IFW-KIEL) told DW. “Hey thinks that TOTFs want to protect domestic industries and that revenue from taffs will allow them to cut taxes.”
But currently the Tuties are responsible for only 2% of the US federal government’s revenue, Langaimmer said. It compares about 60% for income and corporate taxes.
American ally takes steps
The threat of the danger of Trump’s tariff caused waves around the world, even some countries forced to pretend any possible steps to put taffs on their exports.
India, which has been single by Trump on high trade barriers for American exporters, has cut its own tattifies from 13% to 11% on several products, including engine bikes and satellite ground installations. New Delhi announced a plan to reduce Taf on more than 30 other products this week.
South Korea and Japan have stated that they will buy more energy and other items from the US, while Thailand says it will increase the import of US agricultural products including Athan, which is used to make plastic.
As it reads retaliatory measures against the danger Trump Tafs, the European Union is considering the need for its newly-made anti-cookian instrument (ACI), especially against American technology firms, financial Times Informed this week.
The ACI was introduced to look into the block’s economic interests in December and allows Brussels to block direct investment or restrict market access.
Jean-Cloud Junkar, head of the European Commission, signed a deal with the President that the European Union states bought more American liquefied natural gas (LNG) and soybean, seeing that the European Union saw that the European Union on European cars on European cars during Trump’s first term. Avoid the European Union to avoid tattiff. But this may not be an option this time.
“I have strong doubt that [making a deal] This time is going to be enough. We can try to negotiate and try to have a pepeaceful approach, but you need to accept a strategy of vengeance correctly that is reliable and difficult, “Batti told DW.
American reputation damaged
Trump’s high pressure strategy can work in a short term to continue dialogue or achieve business goals, but its long -term success is uncertain. In a recent blog post, Philip Luck, for the economist of the Washington -based Center for International and Strategic Studies, like the use of the President’s use for antibiotics.
“They are highly effective in targeting specific hazards, but may be low returns nED from excessive use.
Facing the growing uncertainty in trade relations with the US, many countries are looking for alternative trade markets to compensate the Tariff threat to the European Union along with trains.
The Biden administration pressured Brussels to cut its dependence on China for the source of the rise of Asian power. But with a possible trade it is the closest associate on the horizon, the European Union policy makers can be forced to u-turn.
Despite the suppression of the tariff, Canadian Prime Minister Justin Trudeau organized a summit this week with top trading leaders, which aims to help the country diversify its trade from the US. His Mexican counterpart, Claudia Shinbaum, has again launched the Plan Mexico with the target of cutting dependence on major trading partners.
“Everyone is now asking: ‘Is the United States still a reliable partner?” “Washington’s international reputation damage [from these tariffs] Is on a large scale.
Edited by: Uwe Hessler
