President Trump and Tariffs: Storm or Storm in a Teacup
Kanako Mita, Sawako Utsumi, and Lee Jay Walker
Modern Tokyo Times
President Donald Trump of the United States of America announced sweeping new international tariffs on friend and foe alike.
The executive order on import taxes will be welcomed by Trump’s staunchest supporters. However, it is sending initial economic shockwaves throughout the world.
Trump believes that unfair trading is hindering manufacturing and other sectors in America. Accordingly, Trump believes in a level playing field with low rates being reciprocal, while tariffs are still lower than the worst known offenders.
The 10% baseline tariff begins on April 5.
The BBC reports, “It is the companies that bring the foreign goods into the US that have to pay the tax to the government, although this could have knock-on effects to consumers.”
Nations known for exploiting the tariff system will find tariffs notably higher than the 10% baseline. This includes the nations of China, Japan, Taiwan, Vietnam, and others.
The Trump administration also announced a 25% tariff on foreign-made automobiles.
Trump said, “Taxpayers have been ripped off for more than 50 years… But it is not going to happen anymore.”
AP News reports, “Trump said the import taxes, ranging from 10% to 49%, would do to U.S. trading partners what they have long done to the U.S. He maintains they will draw factories and jobs back to the United States.”
Ursula von der Leyen (President of the European Commission) said, “President Trump’s announcement of universal tariffs on the whole world including the European Union is a major blow to the world economy. I deeply regret this choice.”
It remains to be seen if major economic convulsions will emerge – or if the tariffs will become a storm in a teacup.
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