Tue, 04 Feb 2025

The opening salvos have been fired in Trump's trade war - what comes next?

Are we seeing the opening moves in a wider trade war, and what are the potential economic consequences?

* The US has imposed a 10% tariff on all goods imports from China, but held off on tariffs against Canada and Mexico.
* China has retaliated with its own tariffs on oil, agricultural machinery, and some cars imported from the US.
* This is a trade war, where countries impose tariffs in response to perceived unfair trade practices.
* Economists warn that trade wars can spiral out of control and have significant economic consequences.
* The new tariffs are expected to hurt American businesses, including car manufacturers with supply chains across North America.
* The uncertainty caused by Trump's tariff threats is likely already causing damage to the global economy.
* Other countries may be intimidated into making concessions or agreeing to stricter trade rules.
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