A Brief Rundown on Trump's Trade Wars
The US' most infamous trade war is with China. Last week President Trump's administration placed a tariff of 25% on Chinese goods, affecting hundreds of Chinese products worth up to $34 billion. The products include medical devices, industrial machinery, and auto parts. China responded on last Friday by imposing tariffs on $34 billion of American goods. The US then placed more tariffs on China, releasing a long 195 page document that lists Chinese goods that will now be subjected to a 10% tariff. However, the US can't sustain this back forth game of placing tariffs on China simply due to the fact that the US is running out of Chinese goods to tax.
Europe & North America
The US has placed steel and aluminum tariffs on Canada, Mexico, and 28 EU countries. The EU responded by filing a formal complaint with the World Trade Organization and have announced retaliatory tariffs on various goods, including denim, orange juice, bourbon, motorcycles, peanut butter, motor boats and cigarettes. The EU has also announced a second wave of tariffs that includes $4.3 billion of American goods, including US sunbeds, paper towels, corduroy pants and porcelain tableware. Mexico responded by imposing tariffs on the US valued at $3 billion. The list of goods includes pork, apples, potatoes, bourbon and several types of cheese. Canada responded by announcing tariffs on $13 billion of US products, including steel, aluminum, food, and agricultural products.
The Casualties of Trade Wars
American President Donald Trump believes tariffs are necessary to force countries to abandon unfair trade practices, but he fails to understand that these tariffs hurt consumers and industries both in the US and abroad. Just last month the iconic American automotive company Harley Davidson announced that they will be moving factories outside of the US due to the increases in production costs their facing from tariffs. Trump's tariffs are also projected to hurt Americans in the long run by lowering incentives for innovative business ideas, increasing inefficiency in the American economy, and decreasing opportunities for American businesses to expand overseas.
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