Wednesday, June 27, 2018

Tariff war has begun

Donald Trump's exclusive "America First" policy has caused several arguments. China, Russia, and the EU seem to be involved in the economic war.

A spokesperson for Brown-Foreman said the price of Jack Daniel would be raised by 10% due to the tariffs set by Trump and the EU. In reality, the EU made a retaliation for the Trump's policy with enhancing the tariffs on some American products. There are other several categories of goods influenced by the amendment of tariff standards.

Independent: Jack Daniel’s price to jump 10% thanks to Trump’s trade war, whiskey maker warns

Free trade is an absolute condition for each partner to make a win-win relationship, according to economists who have an ideology of libertarian. But their thought is criticized by other researchers. The main reason is that free trade will widen the inequality of each nation. Thus, some nations will profit from its original resource and others will be exploited. It is warned that industries in the nations inferior to others will perish by free trade.

Knowing this, Donald Trump is willing to protect the domestic industries with a high level of tariff. But, his policy will be disadvantageous for people who could buy foreign products for the lower cost.

After all, the tariff is no good in a longitudinal point of view, in my opinion. I wonder how does Trump feel about the shape of the US after a decade.

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