New game with tariffs

Hạ Lang |

Right from the first term of power, US President Donald Trump considered a commercial protection tariff as a useful ruling tool. Donald Trump has used the application of commercial protection tariffs with a number of major US trading partners in order to reduce the level of US trade deficit in bilateral trade exchange with these partners.

In the second term of the US president, Mr. Donald Trump not only continues to use the commercial protection tariff but also recognizes it as an effective weapon used in both foreign affairs. Confusion. However, reducing the level of trade deficit is not the main goal as with Colombia, Canada, Mexico, China and the BRICS group. For the EU alone, not different from the previous time when Donald Trump threatened to apply trade protection tariffs if the EU did not import more than US goods and products.

Right in the first days after returning to power in the United States, Donald Trump again launched a commercial protection tariff. For Colombia, Mr. Trump achieved the goal. For Canada and Mexico, Mr. Trump quickly "set the reverse gear" after the two important trade partners of the United States cleverly conceded a little bit more nominal than the fact. Donald Trump was responded immediately by China. For the EU and the BRICS group, Mr. Trump has only been so far away that he will threaten to apply trade protection tariffs.

It was enough to see that Mr. Donald Trump was aware of the ability and limitations of commercial protection tariffs, that is, knowing who can play this game with who, can play close to the game with the game. AI (as with Colombia) and must restrain and keep the room to back up the game with AI (such as with Mexico, Canada and China) or must be very cautious (as with the EU and the BRICS group).

The boundary between benefits and harms, between effects and counterproductive effects in the use of commercial protection tariffs is very fragile for Mr. Donald Trump. Mr. Donald Trump may make it difficult for partners but cannot avoid paying expensive domestic and foreign affairs for this difficulty. Therefore, even though it will continue to use the application of commercial protection tariffs, Mr. Donald Trump will not dare to go too far and act too drastically while ready to "set the reverse gear" to avoid loss of body loss. The area and being considered weak compared to the partner.

Hạ Lang
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