Will Trump's Tariffs Cause Economic Growth or a Recession?
How long-term is Trump looking into America's future, and will his plan to raise tariffs and make policies to regain independence for America work? In 2018, the Trump administration put 10 percent tariffs on global steel and aluminum imports. “Wary Markets Rebound as Europe and Canada Retaliate Against Trump’s Tariffs,” published by the New York Times, describes and breaks down the Trump administration's Tariff plan.
The Trump administration renewed the bill and raised the tariffs for global steel and aluminum imports to 25 percent. The Trump administration has also imposed tariffs on imports from countries such as China, Mexico, and Canada. For Chinese imports, the tariffs from China are 20 percent on all imports, 25 percent on all imports from Mexico, and 25 percent on all imports from Canada, except for a lower tariff rate on energy. A Harborfields attendee, Kaia Nikolic, said, “Trump's tariffs can be considered a good or bad plan because it could cause economic recession or growth.”
In response, Canada has imposed an additional retaliatory trade tax on goods valued at almost $21 billion, according to the article “Canada to impose 25% retaliatory tariffs on $21 billion worth of U.S. goods” by CNBC. Along with the European Union, which is targeting a variety of U.S. commodities valued at $28 billion, including whiskey, motorbikes, and cattle, China is predicted to respond soon with its tariffs on American imports.
Some people believe that this will start a global trade war against America. Trump’s vision for his tariffs, policies, and plan has a long-term goal. President Trump believes his policies will increase domestic economic growth and tax revenue by protecting employment and boosting US manufacturing. Trump also wants to restore trade balance with other countries, in turn decreasing the gap between the US's exports to and imports from other nations.
All in all, people either believe Trump's tariffs, policies, and tax plan bring long-term economic prosperity, or will it start a trade war with other nations and crash the stock market?