Select Page

US President Donald Trump has slapped steep tariffs on billions of dollars’ worth of Chinese goods, ranging from dishwashers to aircraft tyres. China has announced its own tariffs on $35bn (£26bn) worth of US goods. Mr Trump also wants to cut the trade deficit with China – a country he has accused of unfair trade practices since before he became president. This has started Trade wars between the world’s two largest economies. But what is a Tariff, Trade Wars, Trade Deficit?

In a Tweet, Trump said that When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!.

What is the Tariff, Trade War, Protectionism, Trade Deficit?

A tariff is a tax.  Tariffs on imports are when you’re collecting tax from another country’s goods coming into your country. This helps the government to get more money from imports up front. Tariffs can help domestic companies compete with foreigners as taxing items coming into the country means people are less likely to buy them as imported items are more expensive. The intention is that people will buy cheaper local products boosting the country’s economy. Donald Trump has imposed 25% tariffs on $50bn worth of Chinese goods, accusing Beijing of stealing intellectual property – which means design and product ideas.

Protectionism is trying to use tariffs to boost your country’s industry and shield it from foreign competition.

Free trade is the opposite of protectionism – it means as few tariffs as possible, giving people the freedom to buy cheaper or better-made products from anywhere in the world. But at the same time, that means companies are less likely to buy local products. Why buy domestic when you can get more, cheaper, from a different country? This means the loss of jobs in wealthier countries, and uneven growth – while free trade has made some people richer, it’s made others poorer

A trade war is when countries try to attack each other’s trade with taxes and quotas. China has taxed US agricultural and industrial products, from soybeans, pork and cotton to aeroplanes, cars and steel pipes. One country will raise tariffs, causing the other to respond, in a tit-for-tat escalation. In theory, China could also tax US tech companies like Apple. That would hit the tech giant, and it could be forced to raise its prices to compensate. This can hurt other nations’ economies and lead to rising political tensions between them. A global trade war could hurt consumers around the world by making it harder for all companies to operate, forcing them to push higher prices onto their customers. 

Trade Deficit the difference between how much your country buys from another country, compared with how much you sell to that country. The US has a massive trade deficit with China. He wants to cut back this trade deficit, and he intends to use tariffs to do it.

From Bush 1 to present, our Country has lost more than 55,000 factories, 6,000,000 manufacturing jobs and accumulated Trade Deficits of more than 12 Trillion Dollars. Last year we had a Trade Deficit of almost 800 Billion Dollars. Bad Policies & Leadership. Must WIN again! #MAGA 

Introducing tariffs on imports is a double-edged sword. Critics say that move could stifle domestic innovation. The lack of international competition might even eventually raise prices at home. if China responds by levying a tariff on U.S. agricultural goods like cotton, wheat or soybeans? That could hurt American farmers because they benefit from those exports to China.

Video on Trade Wars

The 5-minute video by Vox.com explains the Trade Wars

US Trade Wars in 1930

 In the 1930s, the US enacted the Smoot-Hawley Tariff Act, sponsored by Rep. W.C. Hawley and Sen. Reed Smoot, against the advice of many economists. Smoot-Hawley Tariff Act put in place steep, sweeping tariffs on imports as a way to protect American workers and industries.

Canada and some European countries put up tariffs of their own, launching a trade war. Some of these countries abandoned the US as a trading ally and took their trading elsewhere. Soviet Russia, a country not involved in the trade war, ended up gaining trading partners. But, as is the case with most wars, trade wars are harmful for everyone involved particularly poorer consumers. Critics say it made the Great Depression even worse.

So, President Trump may argue “trade wars are good, and easy to win,” but history says otherwise.

Mr Trump’s decision to take on China could lead to adverse effects for consumers in the US and in China, but also worldwide? Is he destabilizing the global system of trade?

Share
123movies

If you love watching movies online for free, moviebox pro apk is one of the best in the market.

123 free movies cuevana.email