<
https://www.theguardian.com/us-news/2024/nov/26/trump-tariff-threat-worldwide-response>
"Donald Trump’s threat to impose steep tariffs on goods imported into the US
has set the stage for a bitter global trade war, according to trade experts and
economists, with consumers and companies warned to brace for steep costs.
The president-elect announced on Monday night that he intended to hit Canada,
Mexico and China with tariffs on all their exports to the US – until they
reduce migration and the flow of drugs into the country.
As officials in the three countries scrambled to respond, Keith Rockwell, a
former director at the World Trade Organization, predicted that Trump’s move
could spark a trade war. “The United States exports hundreds of billions of
dollars worth of goods to these countries,” he said. “Anyone who expects that
they will stand pat and not retaliate has not been paying attention.”
China promptly suggested that both sides would lose from an escalation in
economic tensions. “No one will win a trade war or a tariff war,” Liu Pengyu, a
spokesperson at the Chinese embassy in Washington, wrote on X, formerly
Twitter. Chrystia Freeland, Canada’s deputy prime minister, and Dominic
LeBlanc, its public safety minister, touted the country’s “balanced and
mutually beneficial” economic ties with the US.
Hours after Trump issued the announcements on Truth Social, his social media
platform, economists at ING released research that estimated his broader
campaign proposals on trade – including a universal tariff of between 10% and
20% on all goods imported from overseas, and a 60% tariff on all goods from
China – could cost each US consumer up to $2,400 each year.
“This potential increase in consumer costs and inflation could have widespread
economic implications, particularly in an economy where consumer spending
accounts for 70% of all activity,” James Knightley of ING said.
It is unclear whether Trump, who has described “tariff” as “the most beautiful
word in the dictionary”, will follow through on this plan. Tariffs – levies
paid for by the company importing foreign goods – are not popular with voters,
even Trump’s voters. A Harris poll conducted for the
Guardian found 69% of
people believe they will increase the prices they pay."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
