Donald Trump announced on April 2 the application of tariffs to more than 100 countries. These They range from rates from 10% fixed to all countries to higher percentages depending on products, materials and their place of origin.
The application of tariffs by The United States has generated economic instability that has dropped the bags in most of the world. From Wall Street, which has left 6% of its value, experiencing its worst moment from the consequences derived from the coronavirus pandemic, to IBEX35, which has dropped more than 3%.
What are tariffs?
The tariffs They are tax rates that apply to imported products From foreign countries. In this case, Donald Trump uses these rates as a commercial strategy to make imported products more expensive and, thus, favor national products in the market.
The objective of the White House is to reduce the competitiveness of external products so that the articles produced in the United States have advantage. This type of products are steel, electronic components, complete vehicles or fruit and vegetable itemsamong others.
Who pays the tariffs?
The elders harmed by tariffs are companies and final consumers, as well as the states themselves. So it is in the end these actors who end up paying the consequences.
That a product is added the price of tax rates causes the final price to rise. If the cost is greater than before or higher than another substitute product, this makes the consumer tend to opt for the cheapest price.
This generates a chain effect, since if an article lowers its market performance, the company that produces it generates losses by not being able to sell the desired amount. In turn, this causes exports of national products to be reduced, so the value of the GDP to which the company in question belongs will also be reduced.
The consequences will also pay the American consumers themselveswho will see prices increased as a consequence of the reduction of articles available in the market.
Why does Trump upload tariffs?
The president of the United States, Donald Trump, already used tariffs as a commercial weapon in his first term. Now, on his return to the White House, he has resumed this strategy and He has accused foreign states of “cheating” his country With external products.
Therefore, Trump considers that the United States loses money with imports of articles from abroad. In addition, the objective of the New York tycoon is to promote manufactured products within its borders above those that come from outside.
In a system in which the North American country has become the center of international trade, the measure has caused the markets to experience contractions after Trump’s announcement.
What sectors are the most affected?
The sectors that will experience the consequences vary according to the country and the product in question. Some examples are that of automobilewhich will see how 25% rates suffer in all vehicles made and assembled outside the United States. It will also be reflected in Electronic products, such as mobile devices, computers, chips and the like. These articles are designed on American soil, but are produced and assembled in external countries.
In the case of Spainthe sectors that will be most affected are the Hastofrutícola, especially in varied oil and olive, and the production of car and engines components.
When will these rates come into force?
The different tariffs will enter into force depending on which region they are directed or which article or product is applied.
In the case of cars, These are in force from Last Thursday April 3, adding 25% to its costs within the US borders. The 10% that will apply generalized to more than 100 countries will enter into force on April 5. In the case of the European Union, it is will add another 10% on April 9 In reciprocal tariff concept, the extra cost that Trump considers that have their products in Europe. And in May, those related to the production of electronic components and for cars engines.
