The White House announced that the 104% tariffs on China entered into force at noon, Eastern time, Karoline Leavitt, press secretary, as a retaliation for the 34% tariffs that China applied to US exports. He added that tariffs will begin to be charged from Wednesday.
Market reaction to the news
The US variable income markets are reducing some of their previous profits. The gold fell below the 3,000 $ brand, despite maintaining modest profits of 0.27%, and the Dollar index (DXY), which tracks the performance of the dollar against a foreign exchange basket, continued to fall, with a 0.34% drop to 103.11
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
