Donald Trump’s tariff war: President Donald Trump has started a tariff war, he believes that other countries are earning huge profits by taking advantage of America’s liberal trade laws. He has imposed 25 percent tariffs on Canada and Mexico and 10 percent on China. The big mistake is that American people, who are happy that Trump’s trading policies will enrich America, do not even know what Tariffs are really and how they work.
What do Americans believe?
Americans believe that foreign traders and foreign governments will pay tariffs to the US government, which will make the US dollar horse unbridled. The results of a survey suggest that not two or five, but the entire 75 percent of Americans believe that it is completely wrong. The 15 percent of the Americans in the survey admitted that they had no information about the tariff, while 60 percent showed ignorance that the tariff is a tax given by a foreign government or foreign company to the United States.
How do tariffs work, who pays?
Tariff is a type of tax that the government of a country imposes imported goods from another country, but that tariff is paid not by another (exporter) country, but by the businessman of the importing country to the government of its country.
For example, suppose China sells an Android phone to an American businessman for $ 100. The businessman sells the phone to an American customer for $ 110, which also adds a profit of $ 10. Now if the US imposes 10% tariff on Chinese goods, then the price of the phone will be $ 110. This additional burden will not fall on China. China will definitely get $ 100. But the American businessman will have to pay $ 110 for this and will have to pay an additional $ 10 to the US government.
Now, if the businessman adds 10 percent of his profit for $ 110, the American consumer will have to pay $ 121 for that phone. Thus, the tariff on Chinese goods will fill the treasury of the US government, but at the cost of American citizens! And if the consumer is forced to buy any item as per his wish due to the increased price, it will harm the merchant. Thus, tariffs are paid by importers, not by exporters.
Did Trump fool Americans?
During the election campaign, Trump aggressively talked about putting heavy tariffs on other countries and warning them, which made Americans believe that foreign governments and foreign companies tariff to the United States to sell their goods in the United States. Will pay However, reality is completely different. Now, Americans eventually realizing the fact that Trump misleaded them and made them fool by giving half-incomplete information about the tariff.
This is how exporting country affects the country
If the burden of tariff is to fall on domestic traders, is the strategy to implement them and trap the exporting country is completely wrong? No, the country on which the tariff is imposed also makes a difference. It may also happen that the entire channel of his business is closed. Technical information?
Thus, tariff exporters become a burden for the country.
Taking the example of the above mobile phone, an American businessman can do one thing to avoid tariffs imposed on China. Instead of China, they should start ordering goods from any other country, from a country on which the US has not imposed tariffs. By doing this, the US government will not get additional tariffs, but the price of merchant’s goods will not increase, so the consumer will get cheaper, and the customers of the businessman will also be safe. The American economy will also continue to run. China will get a big shock, as its hands will end millions, crores or billions of business. Thus, Trump was not completely wrong in applying tariffs. If tariffs work to punish a country, yes.
How to oppose tariffs?
The iron cuts the iron, and for justice it is necessary that the fees are made to be made by imposing a fee on them. In response to 25 percent of the US tariffs, Canada has also imposed 25 percent tariff on American goods. This tariff war will be worth seeing.
Is it a matter of concern for India?
no way. India has a huge market which needs every country in the world except America. Trump is still moving very carefully on this issue. The US, which has imposed a heavy duty of up to 25 per cent on neighboring countries such as Canada and Mexico, has imposed only 10 per cent fees on its most powerful rival China in the economic race. Trump intends to maintain good relations with Russia, so he will also protect India. Experts believe that the tariff of Trump will not fall on our country.
