Table of Contents
- 1 Additional tariffs also on goods from China
- 2 China: “Nobody will win trade or tariff war”
- 3 Biden also relied on protectionism
- 4 Tariffs could fuel inflation
- 5 Years of trade conflict with China
- 6 Here are two PAA (Personal/Professional, Actionable, Action-Oriented) questions related to the provided text:
The future US President Trump has announced import tariffs of 25 percent on goods from Mexico and Canada. This will be one of his first orders. They are also expected to increase for China. Trump’s reasoning: Countries are not doing enough against drug trafficking.
As one of his first acts in office, US President-elect Donald Trump wants to impose punitive tariffs on imports from Mexico and Canada as well as additional tariffs on goods from China. He will sign a corresponding decree on the day he takes office on January 20th, Trump wrote in his short message service Truth Social.
Tariffs of 25 percent will apply to goods from Mexico and Canada. Trump justified the move with illegal drug and human smuggling across the border. The tariffs would remain in effect “until drugs, especially fentanyl, and all illegal immigrants stop entering our country,” Trump said.
Both Canada and Mexico have the power to solve the problem. “We’re calling on them to use their power, and unless they do that, it’s time for them to pay a very heavy price,” Trump said.
Additional tariffs also on goods from China
Additional tariffs of ten percent will apply to goods from China. Trump also justified this by saying that drugs such as the deadly fentanyl were coming from the country into the USA. Although China announced that it would take action against it, it did not do so.
The current US President Joe Biden met China’s head of state Xi Jinping on the sidelines of the summit of the Asia-Pacific Economic Community in the Peruvian capital Lima a good week ago. Xi had assured Biden there that he also wanted to work with the future US government under Trump
China: “Nobody will win trade or tariff war”
After Trump’s announcement, the Chinese embassy in Washington warned of a trade war between the world’s two largest economies. “No one will win a trade or tariff war,” said Liu Pengyu, a spokesman for the Chinese embassy in Washington. “China believes that China-US economic and trade cooperation is inherently mutually beneficial.”
Liu also rejected Trump’s allegations that China was deliberately allowing drug-making substances to enter the United States. China has taken steps to combat drug trafficking following an agreement between Biden and Xi last year. “The Chinese side has informed the US side of the progress made in US-related anti-narcotics law enforcement operations,” Liu said.
Most recently, China announced in August that it would tighten controls on three chemical substances that are key to the production of fentanyl. “All of this proves that the claim that China is knowingly allowing fentanyl precursors to enter the United States is completely contradictory to the facts and reality,” Liu said.
Biden also relied on protectionism
Trump had already announced far-reaching tariffs during the election campaign. Tariffs are a type of surcharge on imported goods. They are due at the border when a company or consumer in the US purchases the product from abroad. Trump argues that his tariff policy will lead to US companies producing more in the USA again. That creates jobs.
It is the classic “America First” policy that the Republican pursued during his first term in office. The Democratic US President Biden has also relied on protectionism. He not only largely retained Trump’s China tariffs, but also imposed new tariffs – for example on electric cars. While Biden focused relatively specifically on specific industries, the tariffs announced by Trump are more far-reaching.
Tariffs could fuel inflation
Experts warn that such a measure could have a significant impact on North American trade. Many goods from abroad cannot be produced in the USA overnight. Companies are therefore still dependent on imports from abroad for production – import tariffs then increase the costs for these goods.
Companies are expected to pass these costs on to consumers. In addition, countries affected by the tariffs are likely to respond with counter-tariffs – which in turn is bad for US companies that export a lot.
Years of trade conflict with China
The USA and China have been entangled in a trade conflict for years. Biden left in place tariffs against China that Trump had imposed. The US also imposed economic sanctions and export restrictions to make it more difficult for Beijing to access US technologies. Biden’s administration also introduced restrictions on U.S. investments in China.
Biden also initiated large-scale investments at home to make America’s supply chains more independent – especially from China. However, both countries are closely intertwined economically. Trump also imposed tariffs on certain products from Mexico and Canada, such as steel and aluminum, during his first term in office. He repeatedly argued with the two countries about tariffs and set various conditions in order to avert punitive tariffs.
This article touches on potent topics like international trade, globalization, economic policy, and political strategies. Here’s a potential interview structure with open-ended questions to encourage discussion:
**I. The Impact of Tariffs**
* **Opening:** The article mentions potential inflationary effects of tariffs. Can you elaborate on the mechanisms by which tariffs could fuel inflation, and who would be most affected?
* **Consumer Impact:** How do tariffs ultimately affect consumers’ purchasing power and choices?
* **Business Perspective:** How do businesses adapt to increased costs due to tariffs? What are their potential strategies, and what are the limitations they might face?
* **Alternatives to Tariffs:** Are there alternative policy tools that governments could use to address trade imbalances or protect domestic industries without resorting to tariffs?
**II. The US-China Trade Conflict**
* **Historical Context:** The article mentions a “years-long” trade conflict between the US and China. What are the historical roots of this tension, and how has it evolved over time?
* **Biden’s Approach:** How has Biden’s approach to China differed from Trump’s? What are the pros and cons of each approach?
* **Global Implications:** What are the broader implications of the US-China trade conflict for the global economy and international relations?
* **Future Outlook:** Where do you see the US-China relationship headed in the coming years? What factors might influence its trajectory?
**III. The Role of Trade in Global Affairs**
* **Globalization and Interdependence:** To what extent has globalization made countries more interdependent, and what are the implications of this interdependence, both positive and negative?
* **Fair Trade vs. Free Trade:** What is the balance between promoting free trade and ensuring fair trade practices? How can governments create a level playing field for businesses while also protecting workers‘ interests?
* **The Role of International Organizations:** What role can international organizations like the World Trade Organization (WTO) play in facilitating and regulating international trade and resolving trade disputes?
* **Lessons Learned:** What lessons can be learned from past trade wars and conflicts? How can we apply these lessons to build a more stable and sustainable global trading system?
**Closing Questions:**
* What are some of the biggest challenges facing the global trading system today, and how can these challenges be addressed?
* What role do you see citizens playing in shaping trade policy and advocating for their economic interests?
**Important Note:** Remember to encourage the interviewee to provide specific examples, draw on their expertise, and offer diverse perspectives on these complex issues.
