Tariffs Can Lead to Higher Consumer Prices, Trade Tension, and Retaliatory Measures from Other Countries. Economic Experts Say that America’s Real Challenge is not Tariffs but Its Reliance on Debt and Rising Interest Costs. President Trump’s Tariff Plan is Projected to Raise Over $5.2 Trillion Over 10 Years

Tariffs Can Lead to Higher Consumer Prices, Trade Tension, and Retaliatory Measures from Other Countries. Economic Experts Say that America’s Real Challenge is not Tariffs but Its Reliance on Debt and Rising Interest Costs. President Trump’s Tariff Plan is Projected to Raise Over $5.2 Trillion Over 10 Years

Mujeeb Khan   

 

 

Furniture Manufacturers in Vietnam

  The Trump administration has completed 100 days, and President Trump has made revolutionary changes in government departments through his executive orders. Thousands of people have been laid off. The Department of Education has been eliminated. The government is being kept small, and unnecessary expenses are being eliminated from government agencies. More attention is being paid to reforms in the Pentagon, CIA, FBI, Justice Department, and Homeland Security. Meanwhile, immigration and tariffs are important issues facing the Trump administration now. If immigration is an easy one for President Trump, then tariffs are an equally complex and difficult issue. America was kept busy solving the world’s problems with wars for over thirty years. At the same time, the world was becoming a global village through globalization.

Exports were coming to America from all over the world in this village; they called it a free market economy. In America, people were used to buying cheap goods. It is not so easy to dismantle this global village with tariffs. The materials or parts of the goods that American companies make in China come from different countries. Garments of American brand-name companies are made in Bangladesh; their material, cotton, rayon, and silk, come from Central Asian countries or China. In which case, how many countries will have tariffs? And when a polo shirt made in Bangladesh comes to America, how many tariffs will there be? More than a hundred thousand Americans work in American companies in China, and native Chinese also work with these Americans. They manufactured electronic and non-electronic goods, and these China-based American companies shipped them to markets in America and around the world. In this case, what tariff will there be in African countries, and what tariff will there be in Asian countries? Apple is an American company that makes Apple phones in China. This Apple phone is sold in the US for $900 to $1000, but with the imposition of tariffs on China, this phone will cost $2000 to $3000. Apple is worried about who will buy such an expensive phone? Apple CEO Tim Cook has announced that 70 to 80 million phones will be made in India next year. But labor will be expensive in India, and the government’s foreign corporate tax is high. However, in both the first and second cases, there are high risks for the global economy in President Trump’s tariff policy.

  There will now be economic zones in response to the Trump administration’s tariff regime. East Asia will be a strong and the largest economic zone. The European Union is already an economic zone. It will be made even more dynamic. BRIC will also be a vibrant economic zone with a population of about three billion countries, including China, India, Russia, Brazil, South Africa, Iran, and eight other countries. Latin American countries will also have an economic zone. Now, the cornerstone of foreign policy will be economic. Military-security alliances will become history. The global system and institutions established after   World War II are obsolete in today’s high-tech, fast-moving world. Wars had a special place in the 80-year-old system. In this system, the natural resources of the newly independent countries were exploited by the colonial and imperialist powers. It is a great contribution of China that, with its economic development, it has taken the developing countries out of the plunder and exploitation system of the colonial and imperialist powers.

  President Trump is dismantling this world order. The military alliance, the economic alliance system are ending. The old powers of Europe are the old exploiters. America was a colony of Britain. By becoming an ally of America, they exploited America. These European powers used to put America ahead in every war, and America fought wars for them. When America’s debt reached $37 trillion, America realized that European countries were not spending much on defense, and they are not paying their share in NATO either.  

  Now, everyone agrees that the world order that has left the United States in debt of $ 37 trillion should be dismantled. There is no warmongering adventurism in President Trump’s foreign policy. President Trump is working with full energy to end the Russia-Ukraine war. President Trump wants to restore diplomatic relations with Iran. There is progress in direct negotiations with the United States on Iran’s nuclear program. An agreement on Iran’s nuclear program will bring amazing changes to the region. President Trump is urging Israel to remove obstacles to the supply of food to the people in Gaza.