Sunday, March 9, 2025

Why Tariffs, or Why not?

Abstract 

Trump's tariffs on China, Canada, and Mexico aim to pressure China into opening its markets. This strategy seeks to expand U.S. trade opportunities in Africa and Asia-Pacific, potentially improving the trade balance and addressing national debt. 

President Trump's recent imposition of tariffs on China, Canada, and Mexico is primarily aimed at pressuring China to open its markets[1][3]. 
While Canada and Mexico are included, China remains the main target of this trade policy[4]. The strategy seeks to leverage these tariffs to gain greater access to Chinese markets and expand U.S. trade opportunities in Africa and the Asia-Pacific region[5]. 

By rebalancing trade relationships, the administration aims to address the trade deficit and potentially alleviate the national debt burden[3]. However, this approach has sparked immediate retaliation from China and Canada, with Mexico expected to follow suit[5]. The effectiveness of this strategy in achieving its intended goals remains to be seen, as it risks igniting a damaging trade war[5]. 

Sources 
[2] Trump tariffs: China is a manufacturing superpower - can tariffs change that? https://www.bbc.com/news/articles/cdxqeg51y36o 
[3] Trump's Tariffs on Canada, Mexico and China Snap Into Effect https://www.nytimes.com/2025/03/04/business/economy/trump-tariffs-canada-mexico-china.html 
[4] The US and China Trade Opening Barbs 
[5] China and Canada immediately retaliate against Trump’s tariffs. Mexico is next https://www.cnn.com/2025/03/04/economy/trade-mexico-canada-china-tariffs-trump-hnk-intl/index.html

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