Trump had been on a changing spree ever since he was announced the tariffs for the US imports of aluminum and steel.Many countries around the world are very desperately trying to seek an exemption from it and are busy making various plans for the same.
Which are the countries in the pipeline trying to seek an exemption?
The European Union,Japan and Australia are the ones which are seeking the most exemption from the states.
However there are various other negotiations going on similarly and the impact of these new tariffs is not as a big as a threat to the global trade war.
What is Trump move on this?
In a move for HIS America first policy,Trump has imposed import duties of 25% on steel and 10% on aluminum.In the earlier move he has imposed a tariff of around 30% on solar panels.He had at the same time initiated a negotiation and the re-negotiation of the NAFTA trade and was willing to talk about its various changes.
WHAT IS HIS TAKE ON THE OTHER ECONOMIES?
Trump has been advocating for many protectionist measures and at the same time the European leaders have at the same time decided to have a strong move against these leaders.
The strong retaliation measures have the other world major economies by storm and have ins-tiled a sense of protectionism against other economies.
He also knows that the US economy is mighty superpower that is one of the most sought after superpowers in the world.
BUT IF SPARKED OFF WITH THE OTHER WORLD ECONOMIES SUCH AS EUROPE AND CHINA,THERE COULD GENERATE A TRADE WAR WHICH CAN HIT ALL COUNTRIES INCLUDING CHINA.
Trump’s latest jibe at importing of high tariffs duties violate the tariffs limits in the US and he is wrong of the fact that US tariffs are less than that of the other countries.
What is the actual scenario?
The US spends more than it earns and so there is this constant investment gap savings scenario which continually takes place.
The result lies in a higher resolutions savings rate and a higher US productivity.