Taken at the nominal value of Donald Trump on reciprocal prices is a declaration of total trade war, which would perhaps constitute the biggest shock in peacetime for world trade.
By promising to perceive taxes on imports on any nation that imposes prices or VAT for American exports, it follows a campaign promise to deal with a trade deficit of almost billions of dollars – the difference between the value of American exports and its imports – which it believes is equivalent to a tax on American jobs.
In response, he wants to deploy prices as a “external income service”, simultaneously softening the American deficit and, therefore the theory goes, evaluating imports in favor of domestic production.
Follow the last: Trump’s commercial prices
With a promise to restore industries, the production of lost fleas TaiwanAnd the manufacture of cars and pharmaceutical products in Europe, it promises a country to measure country by country against the status quo.
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The risk for Great Britain remains uncertain
Its main objectives seem to be the main business partners with which the trade deficit is the highest.
Mexico And CanadaThe European Union (whose 10% tariff on American cars is a particular irritation), as well as the “BRICS” nations – Brazil,, Russia,, India (which imposes prices of 9% on American imports), China And South Africa.
What this means for the United Kingdom will not be certain as long as the details will not be revealed in April, but it is a blow for the emerging view of Whitehall that Great Britain could twist in chaos Relatively unscathed.
To begin with, the United States manages a trade surplus with the United Kingdom-in a quirking of statistics, the United Kingdom thinks it also has a surplus-and Brexit has placed it outside the block of the ‘ EU with the ability at least in theory to be more agile.
The United Kingdom also imposes direct prices on very few American products following an agreement in 2021, negotiated by the Secretary of Commerce, Liz Truss, who deleted the prices on denim and motorcycles for the Great Britain, and from Cashmere and Scottish whiskey towards the other meaning.
But we add VAT to imports, and Mr. Trump’s threat to treat the sales tax as a price by another name will cool British exporters.
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Donald Trump accepts that his prices will be inflationary for the United States. Pic: AP
Prices that should increase prices in the United States
Analysts estimated that prices could add 21% to the cost of exports, a blow of 24 billion pounds sterling to national income.
Pharmaceutical products, cars, chemicals, scientific instruments and the aerospace industry – the main components of our American export trade of 182 billion sterling pounds – will all be potentially affected.
But the pain will certainly be shared.
The prices are paid by the importer, not the exporter, and even Mr. Trump accepts that they will be inflationary.
The rise in prices on rue Main could still be the biggest obstacle of the president’s pricing plan.