What Trump has announced on tariffs and why it matters

US President Donald Trump has announced comprehensive definitions of goods from countries around the world, as he called “Tahrir’s Day”.

He says that this step will make America rich again, but economists warn that prices may rise to Americans and that fears of a global trade war have grown.

Customs duties are taxes on goods from other countries. Companies that bring goods to the country pay the amount, usually a percentage of the value of goods to the government.

Trump announced a 10 % “baseline” tariff on imports to the United States. This is what the UK will face.

But 60 countries will strike at higher rates of up to 50 %, including Cambodia, Vietnam, Malaysia and Bangladesh. Countries in the European Union face a 20 % tariff. The definitions are set to make their effect on days.

Trump has also confirmed the definitions previously announced on specific commodities, including 25 % on steel, aluminum and foreigners.

Read more:

Since the 1980s, Trump has strongly argued that taxes could enhance the American economy.

He believes that they will encourage us consumers to buy more American goods, and increase the amount of the tax that was raised. Trump also wants to reduce the gap between the value and export of American goods.

The White House said that other countries benefit from the United States by imposing a high tariff and other commercial barriers. The American president said: “For decades, our country has been looted, looted, raped and looted by near and far nations, both a friend and enemy alike.”

However, Trump bears a tremendous danger to his presidency, as our correspondent in North America wrote Anthony Zerher.

If it succeeds, this step can reshape the global economic system. Trump promises that he will rebuild American manufacturing and make the country more self -dependent.

But it risks the deviation of the allies and economists warning that it may raise prices and threaten the global recession.

An unavoidable chaotic trade war indicates that the BBC Economy Economy is Faisal Islam.

He says that Trump’s decision to take customs tariff revenues to a level that exceeds those seen during the 1930s will lead to tremendous changes to world trade patterns.

Read more:

Economists say that many companies are likely to pass the cost of imported goods to their customers. They can also reduce imports, which means that less products are available – which increases pressure on prices.

To raise the revenues that Trump hopes, American consumers will have to swallow the rise and continue to buy the elements that were made in other countries in similar quantities, says the BBC’s deputy editor -in -chief.

As it indicates, history shows that the front lines losses tend to be consumers, due to low choice and high prices.

Cars and wood used to build homes, beer, whiskey, lenkila and avocado are among the goods that may become more expensive.

Read more:

The global stock market markets decreased and a series of world leaders condemned the measures.

“The consequences will be sick for millions of people all over the world,” said European Commission President Ursula von der Layin.

European Union The two countries end the response to steel and aluminum definitions by 25 % and can announce more measures.

The committee promised to protect European companies, including the auto industry in Germany, luxury goods in Italy and the producers of France.

China He promised “firm anti -measures”, which are likely to hurt American companies trying to sell in the huge Chinese market.

However, Trump’s tariff may also benefit China by allowing President Xi Jinping to photograph his country as a free trade champion, says Stephen McDonnell, Chinese BBC correspondent.

UK Prime Minister Sir Kerr Starmer admitted that the economy would be harmed from the latest customs tariff, but he promised to respond with “cold and calm heads”.

Business Secretary Jonathan Reynolds told deputies that the government would consider how reprisal tariff measures against American products affect British companies.

Canada Prime Minister Mark Carne said that the country will be discussed against the American tariff, “with the goal and strength”, to protect workers and the power of the economy.

On Thursday, a 25 % tax was announced on all vehicles imported from the United States that are not compatible with the current North America’s free trade deal.

Read more:

The UK faces a 10 % tariff for goods heading to the United States, but there is a lot of uncertainty about what might mean in the United Kingdom itself:

Prices may rise – or decrease

Once the definitions are in place, the dollar can enhance. This may increase the import costs of British companies, which may mean the high prices of consumers.

But some economists say prices may actually decrease in the beginning. This is because companies that usually sell to the United States may start sending their goods to countries like the United Kingdom instead – may lead to an increase in the cheapest goods here.

You can be affected by your work

High prices may lead to workers to demand a significant increase in wages. If UK companies see their profitable profits, job cuts may follow.

Upper interest rates may remain high

Prices are currently at 4.5 %, economists expected discounts this year. But if inflation rises due to high prices, prices may remain higher for a longer period.

Read more

The chance of the American economy heading to recession increased to 50 % after Trump’s announcement, according to the former chief economist in the former International Monetary Fund, Ken Rogeov.

Trump previously refused to exclude the possibility of stagnation.

There are concerns that definitions may affect spending on consumers – a large part of the global economy.

In Asia, customs duties will “break business models for thousands of companies, factories and possibly entire countries,” says Economy Estate, Faisal Al -Islam.

Read more: