Last week President Donald Trump made statements regarding the implementation of tariffs on steel and aluminum imports that have stoked fear across the global economy. President Trump proposed a 25 percent tariff on steel and a 10 percent tariff on aluminum. @realDonaldTrump tweeted, “When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win.”
According to Forbes, “The imposition of tariffs would, according to the President, level the playing field between the United States and countries like China. However, some economists worry that imposing tariffs simply invites retaliation – tit for tat. In other words, if you impose a tariff on my goods, I’ll impose a tariff on yours.”
A recent Reuters article makes a claim that, “fears of retaliation from Canada, China and Europe sent world stocks tumbling and pushed investors towards the traditional safe havens of government bonds and the Japanese yen. Europe’s STOXX 600 index fell 1.5 percent, following declines on Wall Street and in Asian markets.”
President Trump has been discussing imports and US tariffs since he first embarked on the campaign trail. This week he will formally announce tariffs that are designed to keep jobs in the United States.