Michael Strin, a senior American institute partner and economist, explains how Donald Trump's tariffs immediately affect consumers, jobs and global markets.
Two weeks of tornadoes for the Trump administration's talks on tariffs have led economists to predict good and bad predictions for US financial health.
One of these economists and senior colleague of the American Institute (AEI) – where Kevin is the director of the National Economic Council, who worked for previously – expressed concern that President Donald Trump's tariff strategy could, contrary to his strength to the economy. Slow.
“I don't think there is at least in my mind that there will be a 25 % tariff on Mexico and Canada's imports of negative economic consequences,” said Michael Steve Esther.
“The economic impact of these tariffs is clear that it hurts workers, damages households, which harm jobs and generally harm the economy,” he said. Aspects of President Trump's agenda. “
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“Among his plans to increase domestic energy production, including his goals to create the United States, consolidate his position as a global leader in artificial information technologies. If President Trump starts a trade war with Canada, and if he starts with the European Union, he will work against his goals.
President Donald Trump signed executive orders on Monday and imposed 25 % tariffs on imported steel and aluminum, the last year in his continuous attempt to repair US trade relations with other parts of the world. (Pictures of Gitti)
Hours before the midnight deadline, Canada and Mexico Barely escaped from 25 % of their tariffs By agreeing with some border security regulations with Trump for 30 -day pause. However, a 10 % tariff in China, which has become a retaliatory cost, has been implemented, and a predicted negotiation call has not yet happened between Trump and China President Xi Jinping.
Monday evening, Trump imposed a 25 % tariff On steel and aluminum The move hopes to allow US local producers to work without fierce global competition and likely have the most impact on the EU.
While pointing out, this is the first time in US history that the president has threatened, “The goals he hopes to achieve by the threat of Mexican and Canadian tariffs are different from the goals he has achieved for tariffs. China gets. ” Allied with “huge” tariffs to create political privileges or change behavior.
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But the economist argues that, traditionally, tariffs raise prices for consumers for imported commodities and parts, help inflation, and make domestic producers less competitive on a global scale.
“If they are to be implemented, and if jobs believe that they will be implemented on the day they are planned, US consumers will soon raise prices very soon, very early. See. ” Human
“I think many Americans are completely concerned about the impact of these tariffs on their home finance,” he said. “Their food will be more expensive, many of the products made in the US will be more expensive, their cars will be more expensive, and this will reduce their wages and income.
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A recent analysis of Yale's researchers showed that Trump's tariffs would destroy $ 1,170. . In addition, Fox News poll Conducting from January 10-13 showed that most Americans expect tariffs to harm the US economy.
Some business groups and Democrats sound alarm about Trump's commercial war worldwide, and to some extent, the economist agrees.
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“I think clearly our trade war with China, which President Trump has begun, has been a little intensified. When President Trump threatened Canada and Mexico by increasing huge tariffs To make it important to some of us, he responded to my export, and this will meet the definition of a trade war. “
“In the first term of President Trump … he significantly increased Chinese import tariffs. China retaliated by increasing its tariff rates on US exports from agricultural products to China. Farmers to offset the effects of Chinese retribution.
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On a larger scale, Trump has stated that tariffs have been a way to return America to a Economic “Golden Age” Before the invention of federal income tax. But according to Strain, government funding can be completely a challenge.
“It is completely unrealistic to argue that the United States can replace income tax by increasing tariffs. There is only enough money in import tax. To offset the money we lose by eliminating income tax . ” The economist said.
He pointed out: A better solution can be less tax and more consumption: “But consumer tax must be structured so that it does not only target imports. Again, there is not enough money there. And if you only target Import is completely distorted, you want to have a wider consumption tax.
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In general, the American economy is “really powerful” and the Federal Reserve has still tried to achieve its inflation goals, Esther while emphasizing “things that need to be excited” on Trump's agenda. Make a tariff game.
“My hope is four years since the tariff rate is lower than it is today. My concern is that the Trump administration may have to put its hand on the hot stove of high tariffs to make The first hand learns the tariffs, as much as the president argues.
Eric Rivele Fox Business has been involved in this report.