Tariffs jeopardize Trump's 're‑wealthing' as backlash mounts
Donald Trump has described the decision to implement new tariffs as "the beginning of making America rich again." The regulations are set to take effect in March and will apply to deliveries from all countries without exception. Economists are sceptical about the potential effects of this move by the US.
Economists strongly question Trump's optimistic vision of a new "golden age" for the USA. According to Abigail Hall Blanco, an economics professor from the University of Tampa, academic literature clearly indicates that tariffs create significant losses for all parties involved, as reported by Deutsche Welle.
Although the new tariff charges are intended to support domestic steel and aluminium producers, they could significantly increase production costs in industries that rely heavily on these metals, such as automotive and construction. These additional costs will most likely be passed on to American consumers.
Professor Meredith Crowley from the University of Cambridge highlights that the greatest harm will be inflicted on low-income Americans, many of whom were Trump voters. An increase in car prices by a thousand dollars could prevent many families from purchasing a new vehicle.
International repercussions and reactions
Canada will be most affected by the new tariffs as the largest exporter of steel to the USA, with a volume of 6.5 million tonnes last year. Prime Minister Justin Trudeau described these penalties as completely unjustified and announced firm resistance.
The European Union has also announced protective measures for its economic interests. Ursula von der Leyen, President of the European Commission, warned of proportional retaliatory measures in response to the unjustified tariffs.
Some countries, including Australia, are seeking exemption from the tariffs. Trump has expressed willingness to consider Australia's request due to the US's trade deficit with that country. Meanwhile, India, ahead of Prime Minister Modi's visit to the White House, has already reduced tariffs on dozens of imported goods.
Ukraine hopes to avoid the tariffs, potentially in exchange for access to rare earth elements essential for American tech companies. Last year, Ukraine's export of metal products to the USA amounted to 500 million dollars, constituting nearly 58 per cent of its total exports to that country.
