“Oil prices are falling, interest rates have dropped (slow, which Fed should lower the feet!), Food prices have dropped, there is no inflation, and the US used for a long time brings billions of dollars a week from countries abusing to the tariff”, US President Donald Trump published the truth on Monday.
This happens despite the fact that the greatest perpetrator of all of them, China, whose markets will break down, just raised the tariffs by 34%, in addition to long -term absurdly high tariffs, without recognizing my warning about the abuse of countries, so that not retaliation, “added Trump.
Market reaction
The American dollar (USD) has not demonstrated an immediate response to these comments. During the press, the USD index practically did not change on 102.90.
FAQ tariff
Tariffs are customs duties taken for some imports of goods or product category. The tariffs are designed to aid local producers to be more competitive on the market, providing price advantage compared to similar goods that can be imported. The tariffs are widely used as tools of protectionism, along with trade barriers and import amounts.
Although both tariffs and taxes generate government income to finance public goods and services, they have several distinctions. The tariffs are paid at the entrance port and the taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, and the tariffs are paid by importers.
There are two schools of thinking among economists regarding the employ of tariffs. While some say that tariffs are necessary to protect national industries and solve the problem of commercial imbalance, others perceive them as a harmful tool that can potentially enhance prices in the long-term perspective and lead to a harmful trade war by encouraging Tit-For Tatt tariffs.
During the fall to the presidential election in November 2024, Donald Trump explained that he was going to employ the tariffs to support the US and American producers. In 2024, Mexico, China and Canada constituted 42% of total US imports. According to the American office of the population, Mexico was distinguished as the best exporter by $ 466.6 billion. That is why Trump wants to focus on these three nations by applying tariffs. It also plans to employ revenues generated by tariffs to reduce personal income taxes.
