Яндекс.Метрика
qr-код - Как-то так стрелка - Как-то так
Leading Economist + ... пиктограмма - Как-то Так THIS     Economic literacy and web solutions
All on the topic: what, how and why. Actual things - in their own words.
Turn your quality WITH ME - BUTW !
If you don't like what you get, change what you give. © Carlos Castaneda     KAKTOTAK.BY - economic design and web development services (php/js - telegram, WordPress, Laravel, Vue, SEO)    Cooperation - on an ongoing basis    Be in the topic   -    SUBSCRIBE      My notes are ECONOMICS +  и  WEB Developer's Guide | php+js+seo   в Telegram   telegram  

Trump imposes duties on China, the United States, Mexico - what is the point and why everyone is betting on the growth of dollar inflation

Trump imposes duties on China, the United States, Mexico - what is the point and why everyone is betting on the growth of dollar inflation

The other day, the US president announced the introduction of 25% customs duties on goods from Mexico and Canada, as well as 10% duties on imports from China.

Even during his election campaign, Trump openly announced his intention to raise import tariffs on goods from countries dependent on the American market. However, then the market reactions to these statements were weak.

Now, after signing a number of decrees on tariff policy, there is concern that import restrictions may lead to a significant increase in prices for final products in the United States.

It's one thing, for example, to include cheap Chinese spare parts at low prices in the cost of cars, and another is to do the same at updated prices from domestic manufacturers. In this context, given the high global value of the dollar, it would be more economically advantageous to have low prices for similar goods from cheap processors.

All this creates prerequisites for rising prices and, consequently, inflation, which the US Federal Reserve System (FRS) is actively fighting by adjusting the inflation rate through the discount rate.

I do not think that import duties on all key items will be increased to the detriment of the Americans themselves.

As Trump noted, for decades we have been importing goods from Mexico and Canada, although we ourselves have enough of all this to meet domestic needs.

It should be noted that both American and foreign companies will suffer from the new policy. However, Trump is focused on the complete transformation of the US economy and on long-term positive economic trends, which is a sign of competent management. His policy can be interpreted as follows: "I don't want the future to be responsible for the mistakes of the previous generation."

But during the presidential term of office in 4 years, rebuilding a long-term investment trend is not one of the easiest tasks.

This also explains the significant influx of of American investment in Chinaover the past 10 years in order to getting products at a lower cost. The key factor for Americans was the relatively low average salary of a Chinese worker, which largely determined the price of goods exported to the United States.

For comparison, the average monthly salary according to the data for the beginning of 2024:

  • USA:Approximately $4,800
  • China:approximately $1,500

Trump's measures represent a purely protectionist strategy aimed at stimulating the domestic economy in the long term.

Speculators are now buying up the dollar again amid fears of a Fed rate hike, while investors, it seems, should rethink their actions regarding the exit from promising investment facilities.

Trump is betting on Americans' wealth based on volume, not prices.

The key condition is that the dollar must be strong in the United States and cheap on the foreign market. This will create price competitiveness for American goods.

But is the American society, spoiled by expensive life, ready for such drastic economic measures? That's a big question.

It is one thing when, for example, China, with problems with the sale of volumes, begins to stimulate its exports through exchange rate dumping in relation to its main trading partners.

автор - Михаленко Р.
M R. Автор - kaktotak.by Specialization: financial and economic design - modeling of business, investment projects of the real sector, analysis and evaluation of efficiency, optimization of the management decision system.

A wide range of web-based competencies for solving business problems.

Subscribe to my telegram channel - My notes are ECONOMICS +
Там я ничего не втюхиваю и не навязываю. Просто делюсь полезной информацией по экономической грамотности. Повышайте своё качество вместе со мной: что, как и почему в экономике на простом языке. Понятия, алгоритмы, процессы, микро- и макроаспекты и многое другое. Может, будет интересно !

And also - WEB Developer's Guide | php+js+seo
Notes and native solutions to simple local tasks in PHP, JS. Something about Laravel, WordPress, Vue and SEO.

  Personal assistance in economic design and web development:

  • Financial and economic modeling, analysis, accounting, business planning
  • Comprehensive web development/project support on the web (php/js, seo – Laravel, WordPress, Vue, telegram, administration, content, advertising in Yandex Direct

  telegram или форма обратной связи

Administrator
36
0
Name
E-mail
Rating
Review

Currency Converter
RUB RUB-icon
USD USD-icon
EUR EUR-icon
CNY CNY-icon
BYN BYN-icon
UAH UAH-icon
KZT KZT-icon
SHORT- what is it about
ECONOMIC LITERACY
  Simple online solutions to problems of economics and finance  
I Want To Know Everything. Useful Tips