President Donald Trump’s tariff onslaught has left many countries facing hefty taxes on exports to the US, despite some initial wins for the president and his allies. The tariffs, which began on August 7, have imposed higher taxes on imports from countries with trade deficits, as well as a baseline tax of up to 50% on certain goods.
Small, poor countries like Laos and Algeria are among those facing significant pain, with tariffs ranging from 30% to 40%. Wealthy US trading partners like Canada, Switzerland, and the UK have also been hit hard, with tariffs increasing by up to 15%.
The closest thing to a “winner” may be some countries that caved to Trump’s demands and avoided higher tariffs. However, it’s unclear whether anyone will be able to claim victory in the long run.
Trump has used America’s economic power to extract concessions from other countries, with many agreeing to pay higher tariffs as part of trade deals. But economists say that overseas exporters have absorbed only a small portion of the rising costs, while US businesses and consumers are shouldering much of the burden.
“The US consumer is a big loser,” said Alan Wolff, a former US trade official. “This is a consumption tax that disproportionately affects those with lower incomes.”
The average US tariff has increased to 18.3%, the highest since 1934, according to estimates. The higher tariffs are expected to impose a $2,400 cost on the average household.
As the situation continues to unfold in court, some experts say that fortunes may change if Trump’s tariffs are upended. A court ruling could potentially lead to lower tariffs and relief for countries like Brazil and Canada, which have been hit hard by the trade war.
Source: https://apnews.com/article/trump-trade-tariffs-deals-winners-losers-25e65f0c984b0cb7d795265aa2976265