The world is crying and disturbed by the Trump tariffs, and it is something that everyone is talking about. A combination of political power, competitiveness, and collaboration have always moulded the intricate economic ties between countries. Trade agreements have been created, broken, and renegotiated over time, frequently reflecting changed goals and leadership. In the globally interconnected world of today, a single decision made by a great power can have unanticipated effects on economies, employment, and sectors. The world has been reminded by recent events vulnerable the international trading system is.
When Trump’s sweeping tariffs go into effect, trading partners rush to provide relief
U.S. President Donald Trump’s higher tariffs on imports from dozens of countries kicked in on Thursday, raising the average U.S. import duty to its highest in a century and leaving major trade partners such as Switzerland, Brazil and India hurriedly searching for a better deal. The U.S. Customs and Border Protection agency began collecting the higher tariffs of 10% to 50% at 12:01 a.m. EDT (0401 GMT).
After weeks of suspense over Trump’s final tariff rates and frantic negotiations with countries seeking to lower them. The leaders of Brazil and India vowed not to be cowed by Trump’s hardline bargaining position, even while their negotiators sought a reprieve from the highest tariff levels. The new rates will test Trump’s strategy for shrinking U.S. trade deficits without causing massive disruptions to global supply chains.
Trump is still holding on: Tariffs increase revenue despite opposition from around the world and cost concerns
‘BILLIONS’ IN TARIFF REVENUE
After unveiling his “Liberation Day” tariffs in April, Trump has frequently modified his plans, slapping much higher rates on imports from some countries, including 50% for goods from Brazil, 39% from Switzerland, 35% from Canada and 25% from India. He announced on Wednesday a further 25% tariff on Indian goods, to be implemented in 21 days over India’s purchases of Russian oil, on top of the 25% already imposed.
Trump said on Truth Social just ahead of the tariff deadline,
“BILLIONS OF DOLLARS, LARGELY FROM COUNTRIES THAT HAVE TAKEN ADVANTAGE OF THE UNITED STATES FOR MANY YEARS, LAUGHING ALL THE WAY, WILL START FLOWING INTO THE USA.”
Tariffs are ultimately paid by companies importing the goods and passed on in full or in part to consumers of end products. Trump’s top trade negotiator, Jamieson Greer, said the U.S. was working to reverse decades of policies that had weakened U.S. manufacturing capacity and workforce, and that many other countries shared concerns about macroeconomic imbalances.
Long-time allies are increasingly pushing back against higher barriers
The list of nations targeted is what makes this action especially startling. With established economic relationships and a common interest in world stability, many are seen as close allies of the United States. Products ranging from electronics and auto parts to steel and aluminium are subject to the new taxes. Due to growing expenses and the potential loss of access to the sizable American consumer market, exporters are now concerned that even Japan’s envoy heads to U.S. over the auto tariff deal.
The strategy, according to critics, runs the risk of alienating the United States at a crucial juncture for cooperation. One economist said, “We should be strengthening alliances, not straining them,” and that trade tensions eventually hurt both parties. Uncertainty continues to be the prevalent attitude among international traders and investors. It’s evident that the additional tariffs have already done more than alter prices; they have also shaken the confidence that formerly supported US trade relations. Additionally, there is the whole U.S.-China restart of tariff talks ahead of Trump-Xi summit.
GCN.com/Reuters