IMPOSED TARIFFS BY TRUMP




In an ideal world, trade would be governed by the doctrines of Adam Smith and David Ricardo. International specialisation and comparative advantage would lead to more efficient production, stronger growth and higher living standards. Countries would unilaterally tear down the barriers to trade.
But this is not the way the world actually works. Trade is managed rather than free.


Donald Trump pushed forward with plans to impose tariffs on steel and aluminium imports on Thursday, arguing the levies were necessary for national security and to stop the “assault on our country”.
Flanked by steel and aluminium workers and key staff, Trump said he had to act to stop the “decimation of entire communities” and insisted there would be a very fair process as the administration used the next 15 days to negotiate exemptions with allies. Canada and Mexico will be exempted.

So basically this simply means that it will be difficult for companies that export aluminium and steel in South Africa as their customers will find it expensive to import due to the imposed tariffs, as they will be paying more than they did before. This will have a huge impact on the economy since few exports will be made less income will flow into the country.
The question is should Trump continue with this, and if he does how will it affect the economy?

Source: The Guardian
Link: https://www.theguardian.com/business/live/2018/mar/08/chinese-exports-trade-wars-trump-tariffs-ecb-mario-draghi-business-live


Comments

  1. Unknown10 March 2018 at 12:08

    If it puts the country at risk he shouldn't continue we can not afford not trading with other countries.

    ReplyDelete
  2. Unknown10 March 2018 at 13:10

    Developed countries make trade bias. Protectionism trade policy should be imposed by poor nations to protect their infant industries not rich nations like US

    ReplyDelete
  3. Unknown11 March 2018 at 04:18

    I don't think that Trump should continue with this because honestly think about it, exports will decrease drastically and therefore this can lead to a point where trade is no longer possible.

    ReplyDelete
  4. Khungo11 March 2018 at 09:38

    If it will increase the country's economy. then I think Trump should continue with it.

    ReplyDelete
  5. Ezile11 March 2018 at 10:24

    This will have a huge effect in our country's economy. It will cause an increase in prices. I think South Africa need to apply import substitution and export promotion.

    ReplyDelete
  6. Unknown17 March 2018 at 12:31

    When does Trump retire?
    But honestly, I feel like poor and developing countries have not been put into consideration here.

    ReplyDelete
  7. Unknown18 March 2018 at 06:49

    Trump is a business person... I trust his decision for the economy

    ReplyDelete

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