Trump’s tariff tactics may reshape global trade: analysts

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WASHINGTON: US President Donald Trump has changed global trade principles by using tariff prices to get concessions on everything from trade to immigration and drug trafficking.

Since his inauguration on January 20, Trump has unveiled blanket prices on Canada and Mexican goods on migration and illegal fantasy, and has increased duties on Chinese imports in the same breath, which mobilizes retaliation. Has been done

And on Monday, he implemented clean steel and aluminum levies, when he imposed duties in both fields before allowing exemptions to compare his first term. Trump looks as a way to raise revenue, trade imbalance and pressure countries to comply with US concerns.

“The degree of uncertainty about trade policy has exploded basically,” said Mars Obest Field, senior fellow of the Patterson Institute for International Economics.

He told AFP that analysts can try to predict where taxes can be imposed on the basis of economic changes, but laying the foundation of trade policy on non -economic purposes can throw things into the spin. – He warned that if the threat level was considered too high, Trump’s tactics could lead to “the return of global supply chains”.

Widely

Already, the risk of Trump’s prices is already larger. Although he had previously imposed clean duties on the imports of steel and aluminum, with hundreds of billions of dollars in Chinese products, he has now threatened all US partners.

Trump has promised “mutual rates” to meet levies that other governments receive on US goods, and ordered the US trade deficit by April 1. US officials have to recommend measures such as additional taxes globally to overcome the deficit.

Board board duties, if imposed, can affect more than $ 3 trillion in imported goods. But Trump’s reasons for Levies on Canada and Mexico – as well as low additional rates on China – are beyond trade.

“This is not a tariff, this is a domestic policy action action,” Trump’s Commerce Secretary -General, Howard Lotnik, told lawmakers last month. “I don’t think anyone should be surprised by the dangers of these taxes or tariffs,” said Christine Mc Daniel, senior research fellow at the Merkts Center.

McDaniel, a former George W. Bush administration official, added that “Trump is very clear that he views him as an important tool in his tool cut.” “He sees it as much as he or she seeks to balance the trade.”

‘To disturb the Applecart’

Stephen Moore, a long -lasting foreign Trump adviser, see prices as a way to “encourage” countries to work in US interests, saying that partners such as Canada, Mexico and China are the United States. As a result of major losses.

Although he believes Trump’s point of view has been effective, he acknowledged that it could be dangerous if he had promoted trade tensions with partners like Canada. Similarly, Washington will seek a “strong and stable economy” in Mexico, adding Fellow Moore, senior visiting Foundation of the Heritage Foundation.

Anu Monak, a companion partner at the Foreign Relations Council, has warned that Trump’s prices may be useless. In addition to threatening the Tight for Tate tariff, Canadians also offered “cultural reactions,” he said, in which people are increasing the US national anthem in sports programs.

“This is really damaging the credibility of the United States, and I think we need to worry for a long time,” he said. For Mc Daniel, the risk of unilateral prices can increase global trade.

“What is the benefit of the WTO membership when any of the largest countries in the world can risk revenue in such an aggressive way for national security reasons?” He asked the World Trade Organization.

“This is definitely bothering appellate in the matter of how we are thinking about the role of international trade agencies, international trade rules and trade agreements,” he said.