How Additional US Tariffs Affect Global Supply Chain Industries
How Additional US Tariffs Affect Global Supply Chain Industries
Blog Article
The trading system of the nation must be strong if the modern world hopes to continue to exert influence over other countries. In this race, all nations, including China, Germany, and the United States, are leading. America has now decided to use more tariffs as a weapon to keep its top spot. Donald Trump, the country’s recently elected president, recently warned in a speech that copyright and Mexico will be required to pay 25%. Trump was embroiled in a trade war with China throughout his previous term, so no one knew he might make such a strange choice. Now, let’s discover more about this trade war.
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US-China Trade War
Tension between the US and China arose in 2018 after US President Donald Trump put a 25% tariff on Chinese exports. Both international leaders and Trump’s citizens needed to hear his decision. The United States sells only $150 billion worth of commodities to China annually and purchases roughly $540 billion worth of things from China. Americans will, therefore, bear the brunt of this additional tariff if China is forced to import goods into the United States. The price of Chinese goods will rise due to paying more tariffs, which will hurt both businesses and consumers. However, retaliatory tariffs on American imports were also levied by China. High-ranking officials from both nations worked together to settle this matter when it developed between them. In 2020, the ‘Phase One’ agreement was formed. The two nations’ tariff policy has not been fully normalized, notwithstanding a slight decrease in tensions. Following his reelection in 2025, Trump declared additional tariff hikes on Chinese imports. A lot of people fear that things might become chaotic once more.
copyright-United States tariff dispute
The United States’ recent tariff strategy has put copyright under a lot of pressure as well. Tension has arisen in the two nations’ economic ties as a result of the Trump administration’s announcement that a 25% tax will be applied to all Canadian goods. Prime Minister Justin Trudeau of copyright said, “This is a big blow to our economy, we will take a strong position to protect our interests,” in a harsh criticism of the ruling. As a countermeasure, the Canadian government intends to raise duties on a few U.S.-imported goods. Trudeau added that nothing came of their direct meeting with Trump to discuss the matter. Therefore, everyone is curious about what will occur next.
U.S. Tariff Policy on Mexico and Europe
Trump is known to be rather insane. However, Trump is now attempting to sour economic relations with America’s longstanding allies, copyright, Europe, and Mexico, after abandoning adversaries like China and Russia. Trump declared raising export duties on many EU nations within a month of taking power. Thus, the EU has also reacted. Likewise, there are reports that Mexico would be subject to new tariffs. “This US decision will harm our economy, and we will deal with it diplomatically,” the Mexican administration said.
Benefits for Bangladesh
The time is best for Bangladesh to take over the American market while the two countries are engaged in a trade war. Trump’s decision to cut back on Chinese imports will force the US to look to countries like Bangladesh and Vietnam to make up the difference in its output. Bangladesh’s exports are probably going to rise, particularly in the ready-made clothing industry. Chinese investors may also invest more in Bangladesh to access new markets. The economy of Bangladesh is benefiting from the plans of several international corporations to establish production facilities there.
What is China’s response to America?
The US tariff hike was sharply criticized by Chinese officials, who described it as “unreasonable and unilateral.” In a statement, China’s Ministry of Commerce stated, “This US action will cause global economic instability and have a long-term negative impact on the supply chain.” China’s Foreign Ministry also issued a warning, saying that “the US will bear the consequences, and we will take all necessary measures to protect our interests.” In retaliation, China intends to levy more taxes on American automobiles, technology, and agricultural goods. China is also strongly opposing this tariff policy in diplomatic settings, including the World Trade Organization.
This trade war has now extended beyond the US and China to include copyright, Europe, and Mexico, among other nations. Bangladesh has the chance to take advantage of this circumstance to improve its standing internationally.
Read More: https://bstandard.info/english/how-additional-us-tariffs-affect-global-supply-chain-industries/