Start Trading Now Get Started
Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Trump Administration Rattling Economic Sabres

By Dr. Mike Campbell
Dr. Mike Campbell is a British scientist and freelance writer. Mike got his doctorate in Ghent, Belgium and has worked in Belgium, France, Monaco and Austria since leaving the UK. As a writer, he specialises in business, science, medicine and environmental subjects.

Trade tariffs are applied to imported goods as a protectionist measure to defend a local supplier from products produced overseas where labour costs, environmental protection, industrial standards and other overheads may be lower. In the eyes of the nation raising the tariffs, this is a necessary measure to protect their manufacturers from dumping, to “level the playing field”. Free trade agreements are set up between nations that wish to facilitate bilateral trade which they are confident is fair. Non-tariff barriers to trade are regulations that goods (and services) must satisfy to be acceptable in a given market. Brexit advocates are hoping that by generating many free trade agreements, the UK will be flooded with cheaper goods yet (one assumes) higher priced UK goods and services will be able to penetrate foreign markets due to being of a higher quality.

The US president has been very bellicose against international trade with the US, suggesting that the USA has got the short end of the stick in (all of) the trade agreements it has freely entered into over many years, with international partners. Presumably, this is because only Donald J Trump knows how to strike a deal. The US and other major Western economies do have some ground for complaint with certain nations, of course. The most obvious example is China which the US has accused recently of unfair practices over aluminium and steel exports to the USA. However, the US president is making the same kind of accusation against US allies such as the EU nations. The US is planning to raise aluminium and steel tariffs against all exporting nations.

Speaking at a press conference at the White House with the Swedish PM (Sweden is an EU state) the president noted:

"The European Union has been particularly tough on the United States. They make it almost impossible for us to do business with them.” He went on to suggest that any EU retaliation over his proposed 25% aluminium and steel tariffs would be met by a 25% tax hike on EU car exports to the US applied in a “loving, loving way”. He insisted that his plan would somehow win over foreign critics: "They'll like us better and they'll respect us more”. This remains to be seen. His guest, Stefan Lofven, was clearly sceptical: "I am convinced that increased tariffs will hurt us all in the long run."

The EU is keen to avoid a trade war with the US which it regards as unjustified and mutually harmful, but it has already identified 100 US imports that could be subjected to retaliatory measures if needed.

Dr. Mike Campbell
About Dr. Mike Campbell
Dr. Mike Campbell is a British scientist and freelance writer. Mike got his doctorate in Ghent, Belgium and has worked in Belgium, France, Monaco and Austria since leaving the UK. As a writer, he specialises in business, science, medicine and environmental subjects.
 

Most Visited Forex Broker Reviews