Stocks in Asia and Europe are sharp

Mr. Trump’s movements have caused a decrease in financial markets, foreign leaders are making condemnation and warns officials against inflation and slow economic growth.

What are the definitions, and who pays them?

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

Definitions are paid by companies that import goods. For example, if Walmart imports $ 10 from Vietnam – which faces a 46 percent tariff – the Walmart will condemn $ 4.60 with definitions to the US 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?

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 was the definitions calculated?

The White House comes out A complex formula formulabut One explanation shows To be clear: the gap between what America exports to a country and what it imports.

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 – the customs tariff will be applied to be eliminated.

He has long described the bilateral trade deficit as examples that America is “torn” or “support” other countries.

In the White House tariff accounts, the countries that send the United States more than goods were more than that it buys with an “unbalanced” trade and will face a higher tariff.

This formula does not explain the fact that some countries are better in making certain products, a concept known as the relative feature. Economists say it is not logical to force countries to equal their exports and imports exactly to and from the United States.

How was the reaction of financial markets?

On Wednesday, a global defeat began in stock markets, where concerns about the trade war deepened. Those concerns have been largely confirmed yet China took revenge on Against Mr. Trump’s sweeping tariff with sharp drawings on its own on American goods.

The S & P 500, the USA Standard Index, 6 percent fell on FridayAnd bring its losses for the week to 9.1 percent. This was the most severe weekly decrease since the first days of the Corona virus epidemic in March 2020.

The losses were widespread, as technology companies as well as companies that depend on Chinese manufacturing were struck in their supply chains. Apple shares decreased by more than 13 percent during the week. The shares in Catpeberler, which manufacture construction equipment, fell about 11 percent.

How did the commercial partners respond to us?

China He said he would impose 34 percent customs tariff On all American products, the fees announced by Mr. Trump this week matching Chinese goods. 11 American companies were also prevented from doing business in China, and the customs authorities said that they would stop chicken imports from five of the largest agricultural exporters in America.

European Union She said she was preparing for the new anti -tariffs, after announcing previous retaliatory measures Concentrated On a wide range of commodities, including whiskey, motorcycles and women’s clothing. European Union officials also consider commercial barriers to services, using New trade weapon This was only developed in 2021 to target Big Tech and Wall Street.

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.

Britain I tried to cultivate closer relations with the United States, however It is still washed away in the tariff of Mr. Trump.

South Korea An emergency work squad was held and pledged to “pour all government resources to overcome a commercial crisis.”

Brazil He said he was evaluating the reprisals.

Australia He said that he would not respond to revenge definitions, as Anthony Albaniz, Prime Minister, pledged not to “join a race to the bottom that leads to high prices and slow growth.”

What are the exempt countries?

Russia was significantly absent Of the large and small countries, which were afflicted with the new American definitions.

Treasury Secretary, Scott Payette, said that Moscow had survived that the sanctions imposed on the country after its invasion of Ukraine actually suspended the United States’ trade.

But commercial data draws a more complex picture. Last year, Russia still exports about $ 3 billion of goods to the United States, according to American trade figures, most of which are fertilizers and platinum.

North Korea, Cuba and Belarus were excluded, which are also subject to difficult sanctions, from new drawings.

What happens after that?

Jerome H. Powell, Chairman of the Federal Reserve, on Friday, from President Trump’s risk Folding inflation and slowdown.

Soon many analysts have reduced their expectations for economic growth, saying that the customs tariff will increase the prices of consumers and corporate costs, slow demand and economic activity.

Nancy Lazar, the world’s chief economist at Piper Sandler, estimated that the American economy may contract 1 percent in the second quarter. She had previously expected a flat quarter. “It is an immediate blow to the economy,” she said.

In a note on Thursday, economists at Footch Transitions said that the definitions had greatly raised the risk of stagnation in the United States. He said that the definitions will lead to the high prices of consumers that will pressure real wages and weigh to spending on consumers.

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.

Avocado, tomatoes and strawberries imported from Mexico are some of the first places in which shoppers may notice a rise in prices.

It may take longer until prices rise for durable goods, such as cars, due to the current stock, or if companies expect the definitions to be temporary.

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.

Mr. Trump has argued that the price increase will be small compared to other economic benefits, and he repeated this feeling. During the weekend, Kristen Wilker, the president of NBC News asked whether he was concerned that the definitions could make cars more expensive. Mr. Trump answered that he “cannot care.”

“If the prices of foreign cars rise, they will buy American cars.”

What does it mean to be an American?

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.

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 Karl Russelland Colbey Smithand Ian Austinand vjosa isaand Annie Corealand Keith Bradcher and Rappeport in this field.