China is already subject to a significant tariff of the United States and from Trump’s first term. But the nature of today’s new leishers from the White House on every import of goods from China – from toys, to mobile phones, to clothing – is new and significant.
Promised tariff revenge in Beijing – Including new imports from the US oil, agricultural machinery and some cars are much less wide. However, the retribution moves us to the Arena of the “tits for dad”, where the country that feels tariffs believes that it remains nothing but reflected to show its own citizens, it cannot be pushed by a foreign state.
It Determining the vocabulary of a trade war. external – And economic historians warn that they seek to adjust their impetus and can quickly go out of control.
Trump used virtually all justification Under the sun for tariffs, from increasing the higher tax income to raising US production and balance trade. But one thing that the last days confirm is the new president views them as a powerful way to force other peoples to do what he wants.
He threatened a large -scale and feed tariff for Colombia when he initially refused to accept flights to the US deported citizens, but threatened when he agreed.
Yesterday, the White House may indicate the reaction of Mexico and Canada, as evidence of tariff threats bring results. He threatened to ride roughly its own North American free trade transaction If these peoples did not pull up to border control. Although, how many of these two countries actually promised yesterday on border security regarding what they had already done, open for the question.
However, the problem with the White House that uses tariff threats in this way is that if other countries do not retreat – or the arrangements are not reached – Trump may well believe that he has nothing left to follow or risk losing All authority. And a purposeful country can feel that it should respond with its prepared counterman, even if they prefer.
This high -risk dynamics – if everything can be released from the control in the atmosphere of distrust and political pressure – so many analysts and economists are far from how everything happened to Mexico and Canada this week.
