More than 9 billion euros. It is the chilling figure that stages the loss of stock capitalization worldwide – according to the Bloomberg agency – as a direct consequence of the Tariffs announced by Donald Trump During the past week. Practically, there is no parquet that in recent days has been saved from collapse, and this week began with European stock markets, registering losses around 6%, weighed by the falls of Asian and Wall Street markets.
And despite the fact that in what is the responsibility of Spain – the Ibex 35 bounces more than 1% in the opening of this Tuesday – the fear of investors to the United States tariff policy causes a recession, continues to transfer Volatility and uncertainty to markets.
Be that as it may, already waiting for the consequences in the short and medium term, the European Union continues to negotiate or, rather, transfer a new tariff proposal to Donald Trump. Meanwhile, on the national level, the Council of Ministers on Tuesday will approve a series of measures and aid of 14,100 million euros for the productive fabric affected by tariffs.
What Trump is looking for
However, the tsunami caused by Donald Trump is not trivial and the question he is around during the last weeks or at least more unknowns is: ¿What does Donald Trump intend with tariffs?
To tell the truth, Trump has been arguing and defending that the United States should use tariffs to boost its economy. His intention, according to the BBC, is that this policy can encourage US consumers to buy more products manufactured in the US, and that can increase the amount of taxes collected and create huge levels of investment in the country.
Less merchandise and more tax revenues
Directly, Donald Trump wants decrease the trade deficit of the United States, which has reached significant figures in recent years. In this sense, Trump’s administration argues that these deficits represent a threat to national security. From there, what happened in the last week.
The idea is that tariffs become a Alternative income source for the US government. This would allow – as we said – reduce internal taxes, moving part of the tax burden to the foreign exports.
Respond to unfair trade
Trump’s tariff policy also seeks to reduce the margin between the value of the goods that the United States buys to other countries and the value of those that sells them. To defend his policy, Trump has not been cut when he warns of “cheats” and “looters” to foreigners.
In less practical, but more theoretical terms, for the US president, reciprocal tariffs are a direct response to what he considers unfair and unfair commercial practices, by other countries, such as high taxes on American products and currency manipulation.
