U.S. President Trump announced a 30% import tax on goods from Mexico and the European Union starting on August 1, raising concerns about economic and diplomatic impacts.

This taxation has been warned by economists to increase prices and unemployment, while also undermining the United States' credibility in international trade negotiations.

MAIN CONTENT

  • The U.S. tax policy is expected to create upward price pressure and negatively affect labor.

  • Concerns about the reputation of the United States in global trade due to unilateral moves.

  • Warnings issued by leading economists from international research institutes.

What economic impacts does U.S. tariff imposition cause?

Top economists, including Mary Lovely from the Peterson Institute, emphasize that the measure of imposing import tariffs of up to 30% will lead to an increase in the prices of goods, directly affecting consumers and businesses, and causing prolonged unemployment.

Mary Lovely, an expert with over 20 years of experience in global economic research, warns that imposing such tariffs will increase production costs, shifting the burden onto end consumers while also affecting the global supply chain.

"Imposing a 30% tariff not only increases consumer prices but could also lead to the loss of hundreds of thousands of jobs in exporting and manufacturing industries."

Mary Lovely, Senior Fellow, Peterson Institute for International Economics, 07/13/2023

How does the decision to impose tariffs affect the diplomatic relations of the United States?

Alan Sykes, a professor of trade law at Stanford Law School, emphasizes the concern about the United States' reputation when imposing unilateral tariffs, undermining its reliable standing in future trade negotiations with international partners.

Mr. Sykes points out that this action could make international partners doubt the consistency and cooperative ability of the United States in future trade agreements, thereby having a long-lasting impact on its global standing.

"If the United States continues to impose tariffs without broad negotiations, the country's reputation will be severely damaged on the international stage."

Alan Sykes, Professor of Trade Law, Stanford University, 07/13/2023

Expert opinions and real data on the impact of import tariffs

The Peterson Institute has updated its economic model research showing that this tariff could cause the price of imports from Mexico and the EU to increase by at least 25%, directly impacting the overall consumer price index of the United States.

Research also demonstrates the increase in unemployment in related manufacturing sectors due to rising production costs, causing businesses to scale back or shift production overseas to avoid tariffs.

Comparative impact of U.S. tariffs on Mexico and the EU

Affected parties Main impact Annual import value Proposed tariff Mexico Increased prices of goods, supply chain disruptions 650 billion USD 30% European Union Impact on the automotive industry, agriculture, processing industry 720 billion USD 30%

Frequently Asked Questions

How does this tariff affect U.S. consumers? Prices of imported and domestic goods may rise, putting inflationary pressure and reducing consumer purchasing power. Could this policy lead to a trade war? The risk is high as affected partners may retaliate with similar measures. To what extent will the U.S. trade reputation be harmed? Experts believe that the U.S. may lose credibility in international negotiations due to instability in policy. Which sectors will be most affected by the tariffs on Mexico and the EU? Manufacturing, automotive, agriculture, and consumer goods are the sectors most heavily impacted. Will this tax policy be long-lasting or just short-term? It is currently unclear; however, experts suggest that the effects will be prolonged due to the complexities of renegotiating trade agreements.

Source: https://tintucbitcoin.com/trump-de-doa-thue-moi-tien-ao-anh-huong/

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