Live Trump Drifs updates: The markets rise after Trump stops most of the definitions

Mr. Trump maintained a new tariff for China in place and said that he would raise it further, to a total of 125 percent, after Beijing A new round of revenge was announced.

The growing commercial tensions created severe fluctuations in the financial markets. Economists were concerned that the United States could slip into stagnation, especially if the tariffs escalated.

Who pays for definitions, and where does the money go?

The tariff is additional fees on products imported from other countries.

Definitions are paid by companies that import goods. Revenues are paid from the US tariff by US importers to the US Treasury.

For example, if Walmart imports $ 100 from Vietnam – which faces a 46 percent tariff – Walmart will condemn $ 46.00 with definitions to the United States government.

What happens after that?

• Walmart can try to impose the cost on the manufacturer of Vietnamese shoes, by telling it that Walmart will pay the product less.

• Walmart can cut their profit margins and absorb the cost of customs tariffs.

• Walmart can raise the price of shoes in its stores.

• Or, some mixture from above.

Economists found that when Mr. Trump put a customs tariff on China in his first term, most of this cost was transferred to consumers. But economic studies have found that the tariffs on foreign steel were a little different. About half of these costs have been transferred to customers.

Why Trump imposes definitions?

It seems that Mr. Trump’s view is that any commercial deficit – the value of the goods that the United States imports from a country, is deficient in the United States as exports – bad. He has long described the bilateral trade deficit as examples that America is “torn” or “support” other countries.

The president and its advisers say their goal is to make the painful definitions to the point that they are forcing companies to make their products in the United States. They argue that this will create more American jobs and raise wages.

But Mr. Trump also described the definitions as a multi -purpose tool, forcing Canada, Mexico and China to take strict measures on the flow of drugs and migrants to the United States. The president also confirms that the customs tariff will make huge amounts of revenues that the government can use to pay the costs of tax cuts.

Economists say the definitions cannot be achieved simultaneously all the goals expressed by Mr. Trump. In fact, many of its goals contradict each other. The same definitions that are supposed to enhance manufacturing make life painful for American manufacturers, by disrupting their supply chains and increasing the cost of their raw materials.

“All of these definitions are not compatible internally with each other,” said Chad Bonn, an older colleague at the Peterson International Economy Institute, a research center in Washington. “So what is the real priority? Because you cannot happen all these things at a time.”

How did the commercial partners respond to us?

The Trump administration indicated that it was Ready to negotiate the dealsHe said that 70 governments approached the United States to try to deport the fees. Other countries are fighting.

China It now imposes a total tariff of 84 percent on all American products, raising the fees by 50 percent to suit the increase in the number of Mr. Trump in the latest increase. It also prevented more than ten American companies from doing business in China or with Chinese companies, and chicken imports were suspended from five of the largest exporters in America.

China and the United States have now taken a series of steps in only one week, until very recently it could have almost imagined. Nearly half a century ago after Mao Zaidong’s death, the two countries appeared in a path towards greater economic integration. Some experts have even indicated the partnership of China and America as “chimerica”.

Canada She pledged to defend her workers, companies, and the economy from the new customs tariffs and threats from Mr. Trump. Prime Minister Mark Carney recently said it was clear that the United States was. “It is no longer a reliable partner“In March, after the valid of solid patients and aluminum in the United States, the Canadian government said it would impose a new retaliatory tariff on US imports worth $ 20 billion, in addition to the 25 percent definitions that were previously announced.

Mexico Make a great effort to support the definitions, and send more than twenty Kartel leaders accused to the United States to confront criminal charges and send the forces to the American fentanel and border laboratories.

What happens with stock markets?

The standard S& P 500 was about to Bear marketThat was defined as a 20 percent decrease or more than its last highest level, before gathering on 90 days stopping in many Trump tariffs.

How can definitions affect consumer prices?

Mr. Trump targets the countries that provide a wide range of goods for the United States. For American families, The very possible result is the high prices In grocery stores, car dealers, electronics retail and clothing outlets.

Mr. Trump’s tariff by 25 percent on imported vehicles Send tremors already through the auto industryPaying companies to stop charging cars to the United States, closing factories in Canada and Mexico and placing workers in Michigan and other states.

Nearly half of all vehicles sold in the United States are imported, in addition to approximately 60 percent of the parts used in the collected vehicles in the United States.

Since the establishment of the free trade zone in North America in 1994, American and foreign auto companies were built Supply chains that cross the border The United States, Canada and Mexico.

For example, the Chevrolet Blazer 2024, a famous sport vehicle made by General Motors, is assembled at a factory in Mexico using engines and transportation that is produced in the United States.

Stelantis cleared factories in Canada and Mexico that make Chrysler and jeep and infiltrate 900 American workers who have provided these factories with engines and other parts.

Audi, the luxury section of Volkswagen, and Jaguar Land Rover, based in Britain, stopped their exports to the United States.

Yale’s budget laboratory fate that A new car tariff for Mr. TrumpAnd that entered into force on Thursday, would raise the prices of vehicles 13.5 percent on average, equivalent to an additional 6400 dollars for a new 2024 car. In total, American families You will pay from $ 500 to another $ 600On average, as a result of the definitions, the group is estimated.

Wirecster has advice on how Consumers can deal With the effects of aggressive definitions.

What happens after that?

Jerome H. Powell, President of the Federal Reserve, recently from the dangers of President Trump’s introductory Folding inflation and slowdown. Another monthly reading of consumer prices is issued on Thursday, although the full effects of definitions did not turn into the economy on a large scale.

What is the history of definitions in the United States?

1789: In its foundation, The United States relied heavily on the definitions To finance the federal government and protect local manufacturers, Alexander Hamilton suggested the first treasury minister.

1828: The federal government has approved the 38 % average definitions to protect the country’s manufacturing sector from foreign competitors. These “” “” “A tariff of returnBy the southern states, whose economies have relied on exporting raw materials and importing manufactured goods, which leads to a constitutional confrontation.

1930: the SMOOT-HWLY TV Law The age of 1930 after the collapse of the stock market in 1929, in an attempt to protect American companies. instead of, As shown in “Ferres Boyle’s holiday”, “ The definitions “did not succeed, and the United States sank in deeper depression.”

1934: Franklin de Roosevelt signed Trade Trade Conventions LawWhich gave the president the authority to negotiate bilateral trade agreements. This paves the stage for more than 90 years of liberal free trade policies.

Reports previously contributed Mark Landlerand What Nelsonand Alexandra Stephensonand Andrew Dahrinand June Kimand Jacques Iwingand Karl Russelland Colbey Smithand Ian Austinand vjosa isaand Annie Corealand Keith Bradcher and Rappeport in this field.