Will Trump's economic team ignite a global trade war?
Will Trump's economic team ignite a global trade war?
In confirmed news, Trump's economic team is considering increasing customs tariffs on American imports.... and therefore this measure will lead to an increase in the prices of Chinese and European products in the American market. And that the increase in prices will affect the consumption rates of the American citizen and begin to decline.
And that the American market or the American consumer's decision affects the largest factories in the world, which are China and Europe.. and therefore their opposite decision will be to reduce production and approve a customs tariff on American exports to both China and Europe. And that the decision of any government in the world to approve a customs tariff on any goods imported into it. It contradicts the free market economics that the Obama administration called for and contradicts the GATT agreement. The existence of a customs tariff violates the principle of competition, which pushes products towards continuous development, which is in the interest of the consumer first and last. Protectionist policies of imposing customs tariffs on products manufactured within any country greatly limit the opportunities for product development and prevent producers from studying consumption patterns and consumer desires.
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This leads to more unemployment, whether in America, China or Europe.
..Because the high prices of goods imported from China and Europe will motivate the American citizen to buy the American product regardless of the quality levels of its Chinese or European counterpart. Consequently, in the long run, large American economic entities will get rid of research, marketing and product development departments. Or reduce the number of employees in them. This is due to the lack of competition and the lack of need for employees in these departments within the company or institution. The same picture will exist in China and Europe, with lower production levels and getting rid of workers to save costs. And the reduction in production by China and Europe.
It will reduce dependence on energy from oil imported from Middle Eastern countries. Consequently, oil prices will decrease slightly. However, this percentage will affect the economies of countries that depend mainly on energy and oil revenues that they export to Europe and China.
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