How do the announced rates work? Why does US President want them to apply them? How will the global economy be affected? And in Portugal, what can we expect? The questions and answers about Donald Trump’s measure that woke up the world.
The revelation arrived this Wednesday and the world trembled. You Markets startledthe dollar devalued and Economic partners took their hands to the head. Part of the promise of “making America big again”, Donald Trump has announced a new tariff table Applying on imports around the world – that not even the lands where they only live penguins escape.
The measure is controversial. THE Nobel of the economy Paul Krugman states that the It’s “full of mistakes”. Many others Economists warn that the idea can have enough negative than positive effects, generate a global trade war – that will increase prices for Americans and will lead the United States to a possible recession.
Here is the main questions and answers about (ill -fated) Tarump fees.
How do tariffs work?
The tariffs are additional fees charged on goods imported from other countries. They are a percentage of the price of the product that is added to it.
Are the Companies that sell the product to the country what have to pay the tariff to the government – Being able to choose Leave the consumer side expense, reflecting the rate in the final value and increasing the final price of the product.
Why apply rates?
The principle is foster the consumption of internal products, instead of products made abroad. Trump’s logic is based on the idea that If the products that come from outside are more expensive, the population will buy more American products and .
And, of course, there is the basic idea that, if charge more fees to others, more money is received – That, . O US President believes that other countries have taken advantage of the US and want to reduce the distance between the value of the goods that the country imports and those that export.
What tariffs are these now announced?
According to the announcement made by Donald Trump, a 10% base rate will be applied to all imports that reach the US. Custom Enter into force this Saturday, April 5.
However, Most countries in the world will be the target of much larger tariffs – that even exceed 50%. These enter in force next Wednesday, April 9.
What are the most and least affected countries?
There is a series of countries to whom it will only be applied to such a minimum rate of 10%like the United Kingdomo Brazila Australia and Saudi Arabia.
Already o most affected will undoubtedly be China – the largest US Economic Economic Rival. Chinese products will now apply a 54% rate (with a new 34% rate to add to 20% that was already applied).
Also the Cambodia and Vietname – Countries where a significant portion of factories is installed that produce products we all consume – are highly affected. Will have 49% and 46%, respectively.
Other countries with markedly high rates are São Pedro and Miquão – which is French territory – and Lesoto (50%), Laos (48%), Madagascar (47%), Myanmar (45%), Sri Lanka (44%), Falkland Islands (42%) and Syria (41%).
How is Portugal reached?
Portugal and member of the European Union and, as such, will be applied to the fare that will be in force to all Member States.
And although not among the worst, the European Union – which is a US historical partner – also quite impaired In this equation. Is part of the list of countries that, starting next Wednesday, will see a 20% rate about all products that make you enter US territory.
How are the countries to respond?
A Trump’s decision he was widely criticized by the most varied world leaders from east to west.
Also China threatened with “firm countermeasures” in retaliation.
Also through Asia, the Japan considered the decision “extremely unfortunate”, stressing that it can consist of violation of trade agreements between the two countrieswhile the South Korea stated that the “global trade war has just become a reality”.
Among countries that share language and ties with the US, the Australia replied that “this is not the act of a friend” and the Canada warned that it will be necessary to answer “with force”.
In Portugalo Government announced that the Minister and the Secretary of State for the Economy will start, next week, a . All “Evaluate the impact” that tariffs can have on Portuguese companies and the national economy and study a response strategy.
And for the Americans? Won’t it be worse?
Most economists say yes. What is anticipated is that tariffs lead to increased US pricessince rates should be reflected in the value of products, with companies imputing new costs to consumers.
Os cars They are one of the points in the highest focus, but the increase in prices will reach other products of much lower dimension consumed daily, since fruit a alcoholic beverages.
Another scenario that can happen is the companies decide to import fewer products and, with a scarcity in the market, of course, also in this way the prices will rise.
