Trump eyes bigger trade war if re-elected

Former US President Donald Trump (Photo: Reuters).

During his first term as president, Mr. Trump implemented the largest US tax increase since the Great Depression, targeting China, Canada, the European Union (EU), Mexico, India and many other economies .

These countries also responded by imposing tariffs on US soybeans, wine, orange juice and motorcycles.

As a result, US agricultural exports have plummeted, forcing the Trump administration to spend $23 billion to help farmers offset losses.

Now, in his re-election campaign, the American billionaire promises to escalate the trade war on a much larger scale.

In several interviews, Mr. Trump has revealed plans to impose a 10% tax on most imports and a 60% or higher tax on goods from China.

According to Mr. Trump's argument, tariffs will boost American factories, narrow the gap between imports and exports, and increase job opportunities for Americans.

The former president believed that import tariffs would revive American manufacturing, reduce dependence on foreign goods and give American companies a competitive advantage over cheap products from China and other countries.

But studies show that Mr. Trump’s policies are raising prices for both consumers and American factories that rely on foreign inputs, while also reducing exports of some retaliatory goods.

In a recent letter, 16 Nobel laureates in economics expressed concern about the risks a re-elected Trump administration would pose to the economy and the rule of law.

On the practical side, executives in sectors like retail and alcohol worry that tariffs could inflame tensions, raise production costs and once again force them to close off important overseas markets.

US wine exports to Europe fell 20% after the EU imposed a 25% retaliatory tariff on whiskey, seen as retaliation for the Trump administration’s tariffs on steel and aluminum.

Additionally, China tariffs have increased the cost of importing goods for retailers, forcing them to either raise prices or cut into their profits.

“We need a trade policy, not more tariffs,” said David French, executive vice president of government relations at the National Retail Federation. “All the Trump team has done is disrupt the supply chain and cost consumers $220 billion.”

"Former President Trump sees trade as a zero-sum game, where you win, I lose, and vice versa. That's certainly not how trade works," French said.

Source: https://dantri.com.vn/the-gioi/ong-trump-nham-den-cuoc-chien-thuong-mai-lon-hon-neu-tai-dac-cu-20240628154536161.htm