Tue, 04 Mar 2025

Tue, 04 Mar 2025 Trump tariffs could be good for some countries, including the UK

Donald Trump's tariffs on Canada, Mexico and China have turned back the clock 70 years, erasing decades of globalisation.

* US President Donald Trump has imposed tariffs on Canada, Mexico, and China, turning back the clock 70 years on globalization.
* The tariffs will lead to higher prices for American consumers, with retailers increasing costs to cover the extra taxes.
* Economists predict US inflation could rise further in the second half of this year, assuming no further tariffs.
* A previous tariff imposed by Trump on washing machines led to a significant price increase and a cost of over $800,000 per job created.
* American households may see a tax rise of up to $300 due to the tariffs.
* The impact on US growth could be up to 1%, with Canada's economy potentially facing a greater hit in terms of lost income.
* Mexico's central bank has less capacity to cut interest rates, making it harder for them to mitigate the effects.
* Other countries like Vietnam and Malaysia have seen their exports grow as they replaced China in selling to America during Trump's last term.
* The UK could benefit from closer trading links with the US and greater foreign investment if we establish a more certain environment.
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