on US tariffs & global repercussions:
US president Trump is still addicted to penalty tariffs to be imposed on foreign nations competing with the US in any economic field whatsoever, boasting their immediate coming into effect as a 'Day of Liberation' for America. The repercussions of such tariffs serve him as a proof that he can get anywhere only by pressuring long-standing partners in trade and politics. He might soon find out how wrong he is ....
Latest News on Global Economy on April 4:
The penalties announced by Trump on Wednesday [April 2] triggered a plunge in world financial markets and drew condemnation from other leaders reckoning with the end of a decades-long era of trade liberalization.
But there were conflicting messages from the White House about whether the tariffs were meant to be permanent or were a tactic to win concessions, with Trump saying they "give us great power to negotiate."
The U.S. tariffs would amount to the highest trade barriers in more than a century: a 10% baseline tariff on all imports and higher targeted duties on some of the country's biggest trading partners.
That could jack up the price for U.S. shoppers of everything from cannabis to running shoes to Apple's iPhone. A high-end iPhone [produced in China] could cost nearly $2,300 if Apple passes the costs on to consumers, based on projections from Rosenblatt Securities.
[Reuters on April 4]
Some nations involved, however, already released their plans for countermeasures:
China immediately reacted with 34% tariffs on US products including soy beans and which would specially harm farmers in the Middle Western states of the USA, a region inhabited by typical Trump followers. Further measures should include export restrictions for rare earth metals, badly needed in US manufacturing of electronic devices. Furthermore, China will call the World Trade Organization WTO.
In Germany voices are demanding to impose new taxes on US software giants who are up to now earning lots of money without being forced to pay into the German tax system. At the time of cost-intensive plannings for a badly needed improvement of vital infrastructure, such taxes could flood some additional money into the German treasury.
[German Radio News on April 4]
At the same time, Trump and his henchman Elon Musk suffered a backset in Wisconsin where latest elections ensured a liberal majority in the State Supreme Court. It didn't even help that Musk offered payments to voters and supporters of Trump's favourite candidate ranging from 100 - 1.000.000 US $. However, buying votes should constitute an illegal interference in any democratic election. Some day, the Trump administration will have to pay the price for it ....
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