E.U. Pledges to Fight Back on Trump Tariffs as Trade War
Looms …heading on the New York Times.
I would call my below analysis: President Donald J. Trump,
destroying USA economy and others too.
What would happen if D. J. trump goes through:
The E.U. could impose a tax to anything fabricated with aluminum
and steel exported from US to the E.U.
This would backfire USA economy the same as if they would punish USA the
way US doing to Russia’s economy.
To be continued.
…and continue.
Nations exchanges row materials one to the other using their
currencies that is leveled to a standard value in the international
market. That is a fact, a norm, and/or a
habit by obligation.
The aluminum exported by Canada to the United States, is a
raw material exploited in some mines in the Dominican Republic and other parts
of the world by Canada. Here each and
every nation benefit: The Dom. Rep. get paid for the aluminum extracted; Canada
get pay back when it sells that material to other nations, mainly to the US and
in US private companies use the raw material to built things such as computer
cases and other parts; to built car parts, airplanes, and post lamp to
illuminate the cities and bridges of this USA; US fabricate kitchen utensils
and the likes, well, so many things that there is no space here to
mention. Other countries like China,
too, export their aluminum to USA for the same purpose: interchange benefits or
give and take.
The above is nothing else than, but then something else must
value that raw material, and it is money value.
There is an unwritten formula or rule of law: a nation accepts some of
my exportation at a given values and I accept some of their exportation to the
country where I do business at a given value.
Both given value could be too low, too high or some where in between
which such value is given by the international market, the so call, in USA:
Wall street. But, and there is a but
worth to mention:
…but if any government impose a value by giving some other
taxes to the importation exportation of the raw material converted into
technology exported, that government impose a burden to business around the
world, and it is call, that burden: inflation.
Inflation causes unemployment all around any nation that
suffers of that thing …in cases as the one on steel and aluminum as well as
other raw materials not mentioned here, USA, EU, Asia and the rest of the
world, suffers. Why? Unwanted taxes to raw materials just because
it enters other territories produce the value of the tech created with that
material, of a higher cost. To buy car
would cost much more, to buy utensils for the home kitchen much more, to built
bridges still more and computers would cost still more. Airplane tickets would cost more and more,
for the plane cost more so users pay for that cost, not the one that gives the
service.
I just went here, strait to the root of things. The president of the United States must be
careful with what he does and says, for it cost more inflation here in the USA.
Imagine, the federalized nations of Europe, impose a
surcharge tax to any tech imported toward them: American car makers that export
cars to Europe, would pay some extra money to export to them; if China does, to
China too and USA would love to export cars to China with a population of more
than the population of the rest of the world …US would like to export kitchen
utensils, by the billions, but how would US compete with that low labor in
China? Asia, why not export computers to
Asia? But if the price of the device must receive a tax to enter Asia, Europe,
Australia and the rest of the world, USA could not compete with China that
would enter to any part of the planet, their creation, inexpensive, good and
with no surcharge tax by any other nations.
I understand that the
actual President of USA, isn’t thinking of the consequences of a surcharge tax
to steel and aluminum. That is not
business, but counter-business. And will hurt the American economy.
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