US President Trump heralds a new customs round for countries that also raise tariffs on US goods. However, this could further tighten the main problem of the US population – the high prices.
The principle of mutual – reciprocal – tariffs sounds simple. US President Trump explains it yesterday – shortly after he had signed a corresponding arrangement: “Whatever you take from us, we take from you – that works very well. It is a nice, simple system and we don’t have to worry that we take too much or too little.”
The plan: in the future you want to look at each country individually and adapt your own tariffs accordingly. The calculation: If the USA take as high tariffs as other countries, more is produced in the USA.
According to Trump, the number of jobs will increase enormously. “We will have great jobs, jobs for everyone. This is something that should have been done many years ago.” China did it too. “If you produced a car, you couldn’t send it to China. The tariffs were so high. So everyone in China produced,” continued Trump.
Trump is shining against the EU
But not only goods from China should be occupied with higher tariffs. What the US President has been annoyed for a long time: only one inch of 2.5 percent is due for cars from the European Union that are exported to the USA. But ten percent for cars sold from the USA to the EU.
And otherwise Trump is annoyed by the EU: “Well, now you have a VAT of 20 percent, which we consider to be as high as customs, and you charge a lot.” Airlines had called Trump and asked him if he could help them with Europe. “Because they charge us so many different fees.”
Rising prices for US citizens
Now the fees with reciprocal tariffs will probably be difficult to influence. The question is also how serious the US President is this time. He announced higher tariffs on steel and aluminum at the beginning of the week – but the threatened 25 percent punitive tariffs against Canada and Mexico at the last second.
The compensation duties could also be averted by negotiations. And that also because a problem for the people in the USA is getting bigger:
“I have to restrict myself. I was limited to many things. Food and gasoline. It all has to be paid for from the same pocket, “says a citizen.
Essen, insurance, energy, medication – prices continue to rise. More and more people are therefore no longer making ends meet with their income. Higher tariffs are poison.
US companies fear against tariffs
And US companies are likely to suffer, says Matt Totsch. He is the head of finance of a medium -sized company that produces drywall products and almost sells all over the world. “I can imagine that if we press the European Union, retaliation will come, and that could have drastic effects on us, and worldwide.” And that could even cost jobs again.
