Higher U.S. tariffs officially in effect on dozens of nations
Higher U.S. Tariffs Officially Ineffectively Affecting the U.S. EconomyIn April 2017, President Donald Trump began systematically raising U.S.-China tariffs on a diverse range of goods and services. This move was taken as part of a broader effort to address potential economic fallout from the initial tariffs he had implemented, which had sparked criticism for being too costly for the government to enforce. The move came just days after the initial moves by Trump, aiming to limit trade tensions between the U.S. and China.
Tariff Structure:
The tariffs are structured as a percentage of imported prices on key goods. For example:
- Steel imports saw an increase from 20% to 30%, affecting industries reliant heavily on steel production.
- Software exports were increased, particularly in software-related products, impacting tech firms.
- Chemicals and pharmaceuticals were raised by varying percentages, with pharmaceuticals increasing less, perhaps around 5-6%.
Economic Impact:
The tariffs have had both short-term and long-term effects. For the East Coast, specifically New York, automotive and medical products saw substantial increases on U.S.-China trade balances. The West Coast, particularly California, faced significant boosts in software and chemicals.
Public Reaction and Policy Changes:
While initial reactions were cautious, the U.S. Department of Health and Human Services began taking notice later in 2018. However, significant policy changes took place after President Trump introduced a "U.S.-China Free Trade Agreement" (USCFA) in September 2017 to limit tariffs on certain goods.
Critical Evaluation:
Despite the tariffs' widespread impact and criticism, many experts agree that their primary purpose was to provide relief for industries affected by trade wars while protecting U.S. industries from potential risks. The main goal was to prevent global economic instability without significantly affecting small businesses and workers in sectors like pharmaceuticals and software.
Conclusion:
In summary, Trump's initial tariffs on April 2017 were intended as a balance between addressing trade concerns and safeguarding American industries. While there are criticisms regarding unfair practices and potential loss of jobs, the broader policy motivations behind these moves were clear: to promote global economic stability without harming U.S.-driven industries as much as possible.
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