By Kiki
On April 10, US President Donald Trump announced a significant increase in tariffs on Chinese imports, raising them to 125%.
Theoretically, the term "reciprocity" refers to a tax rate that is extrapolated from existing tariffs imposed on US goods by other countries, plus non-tariff barriers such as regulatory compliance costs. In practice, however, this is not how the tax rates for many of the countries in Trump's tariff measures are calculated. Instead, the rates are calculated with the goal of eliminating the US trade deficit with that country.
Why is Trump implementing tariff policies?
For decades, Trump has argued that tariffs should be used to boost the US economy. He believes that tariffs will encourage US consumers to buy domestically produced goods, increase government tax revenues, and attract large amounts of investment back to the US.
Trump wants to reduce the gap between the total value of goods the US buys from other countries and the value of goods it sells abroad. He argues that the US has long been taken advantage of by "cheaters" and "pillaged" by foreigners.
China now dominates the world in manufacturing electric cars, solar panels, ships and many other products, and is becoming increasingly competitive in artificial intelligence, robotics, aerospace and other high-tech fields - something the US no longer sees as in its favor.
In other words, Trump believes that in order to maintain US hegemony as the world's leading economic, financial and military power, he must overthrow the current global trading system and replace it with another.
Why isn't Trump afraid of being scolded for going back on his word?
The US consumer market is huge. Trump believes that other countries can't find alternative markets anytime soon and that these countries will continue to fight for the US market even if the US raises tariffs.
Trump's contradictory behavior, many people try to use his "businessman" origin to explain, that Trump in the management of the company's way to manage the country, his "backtracking" is a negotiating tactic, designed to put pressure on the opponent, to reach a more cost-effective deal for the The US is in a position to maximize its economic interests.
But Trump's "internet celebrity" resume is much more glamorous than his businessman resume. An "Internet celebrity" is not afraid of the number of anti-fans, and does not care about the quality and orientation of the content, but is only afraid of the public forgetting him.
But who wants to sign a contract with a serial promise-breaker anyway?
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