Washington, United States:
The president of the United States, Donald Trump, signed an order that imposed tariffs on imports from Canada, Mexico and China, citing a “great threat” for drugs and “illegal foreigners.” This movement caused a rapid retaliation of its neighbors in North America when a commercial war between the allies broke out for a long time.
On Saturday, Trump ordered 25 percent tariffs on Canadian and Mexican imports along with 10 percent of China’s assets. While the Canadian Prime Minister Justin Trudeau, announced 25 percent tariff but for speaking and dialogue. “
Meanwhile, China “firmly” opposed the last American tariffs and is looking for “corresponding countermeasures.”
What are rates?
Tariffs are basically import tax. They are charged as a percentage of the price that the buyer is paying the foreign seller.
Collected by customs agents and border protection in 328 entry ports in the United States, tariffs vary from one thing to another. For example, these are usually 2.5% in passenger cars and 6% in golf shoes, according to Associated Press.
In addition, tariffs are generally lower for nations that have trade agreements with the United States, especially neighbors such as Canada and Mexico. Several goods are allowed to move between these three rates free countries due to the US-Mexico-Canadá trade agreement.
How does it work?
In general, they are importers, such as American companies, which must pay tariffs, while this money goes directly to the treasure of the United States. In turn, these companies transmit the high cost for customers demanding high prices for their products.
Tariffs have a significant impact on other countries, since they make their products expensive and difficult to sell abroad. Sometimes, foreign companies are made to reduce the prices of their products and sacrifice profits to compensate for rates. This is done to maintain its market share in the United States.
Tariffs are mainly imposed to protect their own harvest manufacturers as the price of imports increase. In addition, they serve as a means to punish foreign countries if they commit unfair commercial practices, such as subsidizing their exporters.
During his presidential campaign, Trump said in a demonstration in Michigan that tariffs are the “best thing ever invented.”
Trump, a tariff defender, believes that they can create more factory jobs, help the government reduce the federal deficit and reduce food prices, in addition to allowing the United States government to subsidize child care.
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