The World Economy And The Reaction To Tariffs

 

The United States of America has imposed tariffs on multiple countries. This impacted the stock market causing a degree of alarm. The trade war with China never ended. The Biden administration did not make an attempt to reverse Trump's economic policies from 2017. Mexico, Canada, and the European Union countries are going to see an increase in tariffs on their products coming into the United States. The response from France, the United Kingdom, and Germany was to impose tariffs of their own in retaliation. What the Trump administration is trying to do is exploit economically counties of Europe, Africa, Asia, and South America. The funds that come from tariffs those believe will enable the government to increase revenue without federal income tax. The problem is that the United States does not have the manufacturing base. To an extent the country has been deindustrialized from globalization. Inflation is not under control and higher prices on goods causes more challenges for the public. Developing nations are going to be disproportionately effected. Consumers might begin to panic buy various items. The corporate elite are not going to face any hardship. Tariffs can indirectly benefit the wealthiest business owners. Foreign products are going to disadvantaged to favor American goods. Consumers around the world are going to pay more for food, clothing, cars, and other services. The new wave of tariffs causes concerns about a coming economic crisis.