THE US President Donald Trump announced on Sunday (9) the implementation of 25% tariffs on all steel and aluminum imports for the country. The measure, which should come into force from Monday (10), represents a change in the commercial strategy of the US government and can have significant impacts on global economy .
According to Senior International Analyst, Américo Martins, Trump’s decision is not surprising, considering his previous actions.
“The big change here is that the US president had announced tariff increases against entire countries. Now he begins to adopt tariffs to try to protect certain sectors of the American economy, ”explains Américo.
Protectionism and its effects
The measure aims to protect the Steel and Aluminum Producers from the United States which have complained about the high level of importation of these products.
However, this decision may have internal and external consequences:
- US price increase: Transformation industries using steel and aluminum can face higher costs, potentially leading to an increase in inflation.
- Impact on business partners: exporting countries, such as Brazil, Canada and Mexico they can be significantly affected, forcing them to seek negotiations or retaliatory measures.
Reactions and possible consequences
The Brazilian government will have to decide how to react to these tariffs. According to Américo, options include increasing rates on American products, as suggested by President Lula, or seeking other diplomatic and commercial alternatives.
The analyst warns of the risk of climbing on commercial tensions:
“Unfortunately, we are seeing the beginning of a trade war. China has already started applying tariffs about $ 14 billion on American products. ”
The situation requires caution and strategy from affected countries.
Brazil, for example, may consider it to apply rates on specific products that impact the US, but with less effect on the Brazilian domestic market, as a way to force negotiations.
According to Américo, the scenario that is drawn is worrying for the global economy.
Climbing protectionist measures can lead to a series of retaliation and counter-retaliation affecting international trade and potentially slowing the world economic growth .
This content was originally published in analysis: how Trump rates impact the global economy on CNN Brazil.
Source: CNN Brasil
Bruce Belcher is a seasoned author with over 5 years of experience in world news. He writes for online news websites and provides in-depth analysis on the world stock market. Bruce is known for his insightful perspectives and commitment to keeping the public informed.
