Tariffs: Bring Impact To The US Economy And To The World

Trump’s Trade Tariffs
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Trump’s Trade Tariffs
Tariffs are imposed for a variety of reasons, but the primary goal is to protect the domestic industry from unfair foreign competition. The essay will address the implications of tariffs on the domestic washing machines as sanctioned by president Trump.
President Trump imposed tariffs on large domestic washing machines and imported solar panel components to defend American companies and workforces. According to the administration, imposing tariffs is among Trump’s pledge to protect American business by putting their jobs first. By doing this, U.S will be raising the cost of cheap imports. The administration is imposing a 30 percent tariff on imported solar modules at a declining rate of four years, and the residential washing machines are going up to 50 percent at a phase of three years. The solar panel industry in the U.S tends to split into two, with the small subsidiary of manufacturer voting in favor of the tariffs.
Trump administration is focusing on balancing trade measures on the imposition of tariffs, as a way of protecting the U.S business as well as not igniting trade wars among the traders. In his speech, Trump is looking forward to having fair trading relationships with the neighboring countries such as China. China is likely to fight back against the imposition of this tariff, which restrict its export. China is considered one of the countries that have been coercing foreign companies and tolerating intellectual property theft into transferring vital technology to Chinese joint-venture partners. The administration is focusing on the prospect of invoking national security as a reason of imposing tariffs on foreign –made aluminum and steel. This is to ensure that the military and U.S industry does not overly depend on the imported sources for the steel and aluminum industry. The European Union and U.S have been sued at the World Trade Organization by China, claiming to have been treated as a market economy since they accessed World Trade Organization in December 2016. William Reinsch, a senior adviser at the Center for Strategic and International Studies in Washington says, the pending cases could churn the international trading system more compared to US tariffs imposed on January 22.
The administration believes that by imposing tariffs, they will manage to reduce harm subjected to the U.S manufacturers. By doing this, panel installers will get more suppliers from Chinese companies because most of the panel makers moved to China. Imposition of tariff decision has been supported by the co-founder of Investor Generate Capital INC, Jigar Shah, who said that the solar panel looks forward to closing doors that had a negative impact on the companies. The decision will interfere with the new projects demand for the n...