#UStoImpose10To12.5PercentTariffsOn60Economies

A New Layer of Tariffs Just Landed. Here is the Practical Breakdown

On July 23 the U.S. Trade Representative announced a set of tariffs on imports from 60 economies. These tariffs are between 10% and 12.5%. They started at 12:01 a.m. ET on July 24. The U.S. Trade Representative is using the Trade Act of 1974 to justify these tariffs. They say the main reason is because of forced labor concerns.

The tariffs on imports from 60 economies cover all of the United States trade. The rates are different for countries.

For example the European Union, Japan, Switzerland and South Korea will have tariffs between 10% and 12.5%.

Canada, Mexico, India and the United Kingdom will have tariffs of 10%.

China will have tariffs of 12.5%.

Some things are exempt from these tariffs. These include fuel, food, fertilizers and some other goods that already have tariffs. Goods protected by the USMCA agreement are also exempt.

What These Tariffs Change in Practice

Companies that import goods from these countries will have to pay more. Some companies will absorb the cost. Others will pass it on to their customers. Some companies will look for suppliers in countries.

These tariffs will affect industries. The markets will react to these tariffs. They may cause costs and inflation. The countries affected may also impose their tariffs.

How I am Looking at These Tariffs

Trade policy is a source of uncertainty. These tariffs are notable because they affect all trade. When tariffs affect this trade the effects are seen over time. They are not just seen in one day.

I do not think these tariffs are a reason to buy or sell stocks now. I think they will be a cost that companies will have to deal with for a while. The exemptions for food and fuel will help some industries.. Overall these tariffs will make trade harder.

As with any policy change the first reaction is not the final one. We will have to wait and see how these tariffs are implemented. We will also have to see how other countries react.

This is just my opinion on these tariffs. What they might do. Policy can. So can the effects, on the economy.

‍#USTariffs #TradePolicy #GlobalTrade @Gate_Square