Trump’s reciprocal tariffs are ‘increasing trade’ after the precedent for decades. Here’s how the tariffs are first opened

President Donald Trump has been hitting the rules that manage world trade for decades. This“Mutual” ‘tariffsIt is likely to create chaos for the conflict with the expected, global enterprises and American allies and competitors to announce Wednesday.

Tariffs since the 1960s –or import taxes– There are no talks between dozens of countries. Trump wants to seize the process.

“It is clear that this has been violating the way to work for a long time,” he said. They will need to be adjusted everywhere. ”

The American indicates massive and sustainable trade shortcomings – has purchased the rest of the United States since 1975 – Trump said that the playground was bent against US companies. For this, a great reason for this, its and his consultants say that other countries have a higher tax tax rate than the American tax tax.

Trump has an amendment: Tariffs are growing to adapt to what other countries charge.

The President is a silent tariff supporter. He used freedom in his first period and places the second more aggressively. Since returning to the White House, 20% of tariffs hit China, 25% tax on imported cars and trucks to take effect on Saturday, a number of taxes from Canada and Mexico can expand this week.

Economists do not share Trump’s recipes. Taxes typically to importers passing into consumers. However, the Trump’s reciprocal tariff is able to bring to the table and reduce its import taxes.

“This victory can win,” he said. “These are the interests of other countries to reduce tariffs.”

He noted that India has already cut the tariffs on the objects of motorcycles to luxury cars and agreed to ramp the purchases of the United States.

What are mutual tariffs and how do they work?

Simple sounds: The United States will raise the tariff for foreign goods in accordance with the matches implemented by other countries to US products.

“If they fill us, we are in charge of them,” he said.

However, the White House did not discover many details. Secretary of Trade Secretary Howard Lutnick focused on how new tariffs will work on how new tariffs will work.

Among the prominent questions, Antonio Rivera, a former lawyer, Antonio Rivera, a former lawyer with the Arentfox Schiff and US Customs and Border Protection, is the fact that the Tariffs is trying to raise the rates to a level one by one by one and the country’s country. Or whether the average tariff of each country is not more widespread and is compared to America. Or something else.

“It’s just too many, very chaotic,” he said. “It is difficult to plan every kind of long-term, continuously. ”

Did the tariffs decrease so much?

American tariffs are usually lower than trading partners. After World War II, the United States has lowered trade barriers and tariffs, as a way to promote trade barriers and tariffs, world peace, prosperity and American exports around the world. And he mainly preached, in general, he maintained its own tariffs, and the American consumers had the opportunity to perform cheap foreign goods.

Trump, former free trade consensus, unfair foreign competition, American manufacturers in the American and offended the cities of the destructive factory in Heartland. In the first period, the tariffs of foreign steel, aluminum, washing machines, solar panels and tariffs of almost everything. Democratic President Joe Biden continued a large number of Trump’s protectionist policy.

The White House, especially the institutions of the formed tariffs, India, India foreign motorcycles, 100% of India, in total of 2.4% in America.

Does this mean that it benefits from the United States?

High foreign tariffs complaining of where there is no foreign countries. The United States has been known for years, known as the Uruguayan tour, which ended with a trade pact, covering 123 countries.

As part of the transaction, the countries were able to determine their tariffs for different products – but in the approach of “most popular nations”, they could not accuse another country more than another country.

Trump’s complaints against US trading partners are also coming to a single term. The United States prefers other developed economies in healthy developments in strong consumer expenditures and productivity. The United States economy grew up nearly 9% without hitting the middle of last year – 5.5% for Canada and a total of 1.9% for the European Union. During this period, 2% of Germany’s economy narrowed.

Trump’s plan goes beyond the tariffs of foreign countries

Not satisfied without climbing the tariff code, Trump continues after other foreign experience in American exports. These include the subsidies that prefer the US exports to the manufacturers at home; Ostensible health rules used for maintaining foreign products; and empty rules that encourage trade secrets and other intellectual property.

Finding the import tax from these experiments to prevent the import tax, Trump will add another level of complexity to the reciprocal tariff scheme.

The Trump team also fights in additional taxes along with the European Union and other trading partners. Known as Wednesday, these capaces are a sales tax for the products consumed within the boundaries of a country. Trump and his consultants are considering a tariff because they apply to us.

Again, the majority of economists are applied to local and imported products for a simple reason, so they do not target foreign goods, and are not traditionally seen as a trading barrier.

And there is a bigger problem: The brothers are great income growers for European governments. “There is no way of negotiations of most countries on VAT … Because the critical part of the income base,” Brad Disker, Headmate, was placed in the Foreign Relations Council X.

Based on the pastry economy, Paul Ashworth, Paul Ashworth, found the average votes of the top 15 countries, which exported to the United States, as well as 6%. This may be almost more than 10% of the United States can reach 20% of the revenge tariffs.

Tariffs and trade deficit

Trump and some consultants claim that the steep tariffs will contradict the US trade deficients that last long.

However, the tariffs did not succeed in the trade cavity: Despite the import taxes of Trump-Biden, the shortcoming reached $ 918 billion from the second highest record.

Depression, economists say are the result of the unique features of the US economy. A large deficit of the federal government, American consumers like this so much, the US consumption and investment in investing. As a result, part of this demand goes to foreign goods and services.

The United States covers the prices of the trade cavity by selling abroad by selling partial treasury securities and other assets.

“Trade deficit is really a macroeconomic imbalance,” said Kimberly Clausing, UCLA economist and former treasury official. “This is the lack of desire to keep and the absence of a tax request. We will operate trade imbalances until they make these things.”

This story was first displayed Fortune.com

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