Lately we have been witnessing trade disputes between the US & China not to mention the tension between the US & ( Canada + the European Union). Tariffs are tools from the past to get a concession from a trade partner. If we take the US & China the recent trade goes around – 350 billions for the US. ( China imports around 150 billions of goods from the US & The US imports around 500 billions). Trump’s desire is to “level the playing field to diminish the negative yearly balance on the trade. Will those tariffs have a meaningful impact in the future? : I don’t think so.
- Presidents come and go, the next one might have a completely different vision on this matter.
- You can not artificially bent a natural competitive advantage a country might have on producing a product or providing a service.
- Even if those tariffs apply for a few years the consumer will not sense it that much because the effect is diluted on thousands of products that most are not essential to your every day living.
SO PLEASE DO NOT FREEK OUT AND LET THE MEDIA SCARE YOU OFF