Trump’s NEW Plan: Tariff Reciprocity, Fight Foreign Trade Barriers (Uncut) 02-20-2025

Trump’s NEW Plan: Tariff Reciprocity, Fight Foreign Trade Barriers| Consequences for US Consumers

welcome back to world affairs and context everyone Donald Trump has been known as a big proponent of protectionism in the beginning of February he imposed tariffs on the neighboring countries on Canada and Mexico as well as the long-term economic arrival of the United States China while in a quite unexpected turn of events Trump decided not to add more tariffs to the mix unless they meet a certain criteria he’s changed his opinion he decided to introduce a series of new approaches towards trade policies that

his administration intends to implement the key word in Trump’s new approach is reciprocity yes reciprocity so president Trump intends to make tariffs reciprocal while it can potentially make the system Fair there are several drawbacks that I will walk you through in this video additionally Trump announced that he will now consider the value added tax system or vet in short to be far more punitive than a tariff which is arguably an excellent point in my opinion lastly Trump said that the United States will

fight against non-monetary trade barriers that are imposed by other countries on those goods that are manufactured in the United States and are exported which to be fair there are not very many of those on February the 17th Donald Trump made a long post onx where he walks us through his new trade policies and ideas and we’ll get into the specifics in just a minute so now that I have shared with you a highlevel summary of these new trade policies let’s take a look at the details I think many of you are going to like this a lot

more than perhaps you liked hiking up tariffs to 2550 or even 100% as was previously announced so Donald Trump is suggesting to charge other countries whatever they are charging the United States no more no less says the United States President so clearly I think it is a good approach this could be a good approach to make the system fairer but again I think there are very many drawbacks to consider and in my personal opinion one might conclude that these drawbacks actually far outweigh any benefits we’ll

get into that in just a second he also says that the value added tax is very punitive in nature and will be treated as a form of a tariff Americans might not be familiar with the vat system or value added tax system vat is used by many countries around the world primarily in Europe in Asia and in Latin America it is a tax that’s added to goods and services at each stage of production or distribution and consumers pay it when they purchase the final product the EU loves that Germany France Italy the UK Sweden and many other

countries have these policies in place they’ve had them for decades um Saudi Arabia the UAE Mexico chile and many other countries do as well Donald Trump also said that his administration will make provision for non-monetary tariffs and trade barriers that some countries charge in order to keep the US product out of the domain or if they do not even let us businesses operate on their territory okay so the third point is quite interesting I think there’s a lot to unpack here and uh I suspect that

foreign countries will not appreciate this particular idea and here’s why you can’t really bully them into abandoning the policies that benefit their economies non-tariff barriers are trade restrictions that don’t involve direct taxes on Imports but still hinder or control trade countries use these trade barriers to protect local Industries to regulate the quality of imported goods or to enforce political or health related measures they are typically imposed not specifically against any particular country so it wouldn’t be

imposed specifically against the United States Goods but uh they do so to protect local residents local businesses and their economy in general so Trump is effectively saying that if a foreign state has import quotas has subsidies licensing requirements or certain customs procedur that the United States doesn’t particularly like then the US may go after them this part of the post made me think twice and it appears that it does need some more consideration let’s put it that way from the Trump Administration now I want to turn our

attention to the main point that was made by Donald Trump in his latest post reciprocal tariffs they sound great on paper but in reality it’s not as innocent of an idea as it might appear at a first glance I understand that many people appear to misunderstand what a tariff is for some reason they tend to believe that it has nothing to do with them that it’s not going to affect the price they pay at a store that is a big mistake it does affect the price you pay at a store in very simple terms a tariff

is a tax that a government puts on Goods that are imported from other countries it makes the imported goods more expensive as simple as that for us consumers and it can encourage us to buy local products instead tariffs are often used to protect local businesses or industries from foreign competition but tariffs do discourage Innovation and tariffs May discourage domestic competition which means that domestic producers won’t have any obstacles to hiking up prices as high as they want to having said that what is a reciprocal

tariff reciprocal tariffs happen when one country imposes tariffs on another country’s goods and in response the other country does the same to the first country well this can be a way for countries to retaliate or to negotiate better trade terms or have a certain degree of Leverage in other areas there are many drawbacks to reciprocal tariffs it’s not as simple as it sounds and it’s not as innocent as it may sound it can’t be because this is politics it’s not pure economics so what are the drawbacks of these reciprocal tariffs

that you need to know about first of all I want you to think about economic retaliation economic retaliation may become a significant issue here this is when one country impos clest tariffs and then the other might retaliate with even higher tariffs leading to a cycle of escalating trade barriers this could result in a trade war or in our case for example in the case uh in the US China relationship this would escalate the ongoing trade War which may harm both economies in the long run especially if

other geopolitical or political goals are pursued through res reciprocity through this tool second we ought to think about negative impact on global economy if countries with the United States now leading the Strand adopt reciprocal tariffs it can actually slow down global trade and in reality it may hinder economic growth worldwide affecting jobs affecting job creation and also affecting Industries far beyond the countries that are directly involved the third point that I would like to make is that reciprocal tariffs May

reduce variety of products that you have available with higher tariffs there could be fewer foreign Goods available at a store so this may limit the options that you have as a consumer remember the US economy in terms of GDP and the purchasing power parity is larger than the economies of many other states combined so what might be an insignificant reciprocal tariff for the United States could be a devastating blow to another country to a trade partner that relies on trade with the United States as its main source of

Revenue this would be your developing or under industrialized nations uh this scenario can particularly affect countries that rely on Imports of specific product s or technologies that are not made locally the fourth outcome of Trump’s proposed approach is an increase of costs for consumers both countries May face higher prices on imported goods which can lead to higher costs for consumers this is especially true if the tariffs are placed on everyday items or Goods that aren’t available locally as would be the case

with many Chinese Imports Additionally the proposed structure may lead to A disruption in trade reciprocal tariffs can lead to a reduction in trade between countries involved and if both countries are imposing tariffs and playing in uh trade Wars effectively it can make it more difficult and costly to do business with each other uh which may hurt industries that rely on international trade in very very simple terms it means that certain products may become simply unavailable because they will have to be

imported at higher costs or not imported at all if producers decide that they can’t make that profit that they need to in order to make those exports possible lastly reciprocity may actually harm domestic businesses how you may ask well even though tariffs aim to protect local businesses they can also hurt the domestic companies that rely on imported raw materials that rely on parts and components or goods for production of their end product so if those materials become more expensive due to tariffs it

can actually raise the cost of production for local companies or in the worst case scenario it may actually put them out of business in short while reciprocal tariffs can be a tool for negotiation or for retali ation they often end up causing more harm than good by increasing costs by reducing trade and harming both the domestic economy and global economy in general so let me know what you think about this new proposal about reciprocal tariffs and uh the main points that I discussed in this short video as always I would love to

hear from you thank you for watching thank you for your time remember to show your support like subscribe and share check out my alternative social media channels you will find them Linked In the description below enjoy the rest of your day and I will see you back tomorrow bye for now