US President Donald Trump has decided that there will be no tariffs for 90 days on all countries except China. This is like a temporary halt on tariffs being imposed worldwide. When other countries got some relief, Trump imposed a massive tariff of 125 percent on everything coming from China. Reacting to this, the Chinese government imposed a tariff of 84 percent on products imported from the US. Due to this, trade tensions between the world’s two largest economies have increased further.
Donald Trump’s statement on the stock market
Donald Trump said that the stock market is not in a good condition at the moment, due to which people are feeling somewhat worried. He wrote on his Truth social platform that everyone is urged to remain calm and assured that the situation will soon return to normal and everything will be fine. Trump tried to convince people that there is no need to worry, “everything will be fine.”
𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐭𝐚𝐫𝐢𝐟𝐟𝐬 𝐚𝐧𝐝 𝐡𝐨𝐰 𝐝𝐨 𝐭𝐡𝐞𝐲 𝐰𝐨𝐫𝐤?
Tariffs are taxes that are imposed on goods we buy from other countries.
Typically, these taxes are a percentage of the price of the goods. For example, if something costs $10 and a 25% tariff is imposed on it, you will have to pay an additional $2.50.
When foreign goods are brought into our country, the companies that do so have to pay this tax to the government.
𝐖𝐡𝐲 𝐢𝐬 𝐓𝐫𝐮𝐦𝐩 𝐮𝐬𝐢𝐧𝐠 𝐭𝐚𝐫𝐢𝐟𝐟𝐬?
Trump believes that tariffs should be used to strengthen the American economy. He says that this will make the people of America buy more and more local goods. This will give the government more money in taxes and a lot of investment will be made in the country.
His main objective is to reduce the difference in the prices of the things that America buys from other countries and the things it sells to other countries. Trump argues that so far some countries have cheated America and America has suffered losses because of those countries. He wants this situation to be improved and the American economy to be strong.
