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According to critics, this solution customs duties are taxwho will yet pay American consumers – importers and final retailers rise prices to compensate for the charges charged. However, it is not clear what exactly goods and countries will be covered by a fresh round Import dutiesAnd the uncertainty has already shaken the markets.
Trump praised import duties and, calling them a “beautiful word”, suggested that they could be helpful in expanding public revenue, promotion American products and jobs – and service as a bargaining card to get concessions from another countries.
– It is about protecting the soul of our country – he argued Trump during the March speech before Congress. He stressed that the intent of the duties is "to re-do America large and rich."
– There will be any confusion, but we don't have a problem with it – he put in, suggesting that "there won't be much."
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Trump besides said that duties are needed to reconstruct balance in the global trading systemwho partially blames for occupation losses in American industry.
He besides suggested that abroad products ‘not subject to control’, while United States have adequate companies to end their dependence on global supply chains.
"American companies will no longer support abroad failing economies with excessive fines and taxes” – sounds 1 of the February Memoranda The White House.
Donald Trump explains his logic
Trump administration declared that the avalanche import threatens certain branches American industry. Therefore, taxation of these products could encourage companies to open production lines or factories in United States – to avoid customs.
– We just want to defend our companies and our people. And they'll come due to the fact that they won't gotta pay customs if they build in America – Trump convinced during the March speech.
However, according to most economical experts, in many industries production is already so automatedthat her relocation to the country will supply small jobs.
– These are romanticist pictures like Bruce Springsteen's song – with a bunch of workers sweating in the steelworks – he says Douglas IrwinProfessor of Economics at Dartmouth College.
As he emphasises, most of the work is now carried out utilizing equipment supervised by engineer. – Production of tons in the 1980s steel It took about 10 working hours. Today, producing the same quantity is 1 working hr – he explains.
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Some studies have shown that side effects customs duties They can even destroy employment growth. For example, there are 80 U.S. jobs that usage steel for all steel production station – and they can be threatened if steel prices emergence rapidly – he explains. Michael Klein, prof. of global Economy at Tufts University and founder of EconoFact.
– If you make the steel more expensive, you can aid 1 factory, but at the same time you will put at hazard the remaining 80 workers who produce refrigerators, washing machines and cars – he explains.
Donald Trump more effective on the border
Trump threatened to impose duties on goods from Mexico, Canada and China, claiming they're not doing adequate to halt the flow illegal immigrants and fentanyl through American boundaries.
– They allowed fentanyl to be introduced into our country on an unprecedented scale," he stressed in March.
– Millions of people came to our country through Mexico and Canada. And we will not let that," he told journalists in February.
– That's how we pay back $36 trillion. debt and all another things," he pointed out in the same month.
In the last fiscal year only 43 pounds (19.5 kg – ed.) of fentanyl were confiscated in the north border The United States, compared with more than £21,000 (9525.4 kg – ed.) along the southwest border of the United States, is reported to be the consequence of data Customs and Border Protection.
Previous fentanyl counterparts were sometimes sent by post from China au Mexico – results from the findings of the home International Trade Commission and the Drug Control Agency.
Meanwhile Illegal border crossing Mexican-American to American website – monitored by American Customs and Border Protection – has fallen since Trump inauguration. The decline trend began in 2024, after an increase in late 2023.
Some trade experts claim that the usage of customs duties as threats is that another countries respond in the same way – harming American companies. For example, alcohol, which is at the heart of a fresh trade war, partially due to the presence of strong American brands in the industry. any Canadian provinces ceased to supply US bourbon and whisky, and the country responded with duties on American goods.
Countries that want to reciprocate United States, frequently impose charges on agricultural products. It is comparatively easy to find alternate sources in their case," notes Irwin, prof. Dartmouth.
– If the work were imposed on BoeingIn fact, the only thing left is Airbus, but soya is soya and wheat is wheat – he explains, adding that "if you do not buy in the United States, you can buy in Canada".
Duty alternatively of income tax?
During the election run DonaldTrump besides threw the thought of replacing Federal income taxation customs duties. A fresh advisor The White House Peter Navarro stated that Trump administration's duties could bring more than $6 trillion (more than PLN 23 trillion – ed.) income over the next decade – although it is unclear how he calculated this amount.
Customs duties were undoubtedly a crucial part of the stream of American income in the 19th century. But then the government was much smaller, and United States did not collect consistently income tax. Currently, customs accounts for about 2 percent of national income.
Some trade experts point out that it is hard to trust on duties to get revenue, as with the increase in duties consumer request may decline – which will consume generated revenue. In addition, gross generated from customs duties can be offset by harm to US companies.
After China imposed retaliation duties on US exports of agricultural products during Trump's first term, this export decreased by nearly $26 billion by 2019, according to the Department of Agriculture's economical investigation Service. Later, the administration approved transfers worth over $20 billion to aid American farmers.
– All gross generated by the duties has been depleted by the costs of mitigating the harm resulting from the retaliatory tariffs," concludes Klein, prof. Tufts.
Text translated from The Washington Post. Written by Shannon Najmabadi
== sync, corrected by elderman ==
Titles and midtitles and abbreviations come from the editorial board.
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