Something very ironic happened in the US recently. We all know how Trump imposed 25% tariffs on steel and aluminium imports; he also threatened similar imports on copper. But retaliatory tariffs from the EU, Canada, and China set off a trade war. And last week the US department of agriculture requested a few EU nations to export eggs to the US. Yes! You read that right. That's because the bird flu wiped out millions of hens causing egg shortage soaring the prices of eggs. The takeaway here is that we live in a deeply interconnected world where trade between countries and continents is indispensable. This also means that as much as tariffs act as a protective shield, they come at a cost. Take copper, for instance. Trump's proposed 25% tariff has already pushed prices past $10000 per tonne on the London Metal Exchange (LME), raising costs for industries like tech, construction, and renewable energy. History has shown that while tariffs aim to protect domestic industries, they often lead to unintended consequences, making goods more expensive and disrupting supply chains. What are your thoughts about tariffs' impact on the global and the Indian economy? Share with us in the comments below. Don't forget to follow Finshots for more such updates! Full story has been covered below, check it out! https://lnkd.in/gPJrNJd9
World is ruled by terribly insecured megalomanic fools the price of which we continue to pay
I think the tariff imposition by POTUS (Pres of the United States) is a knee jerk political reaction. It will eventually hit US citizens and China's stagflation from overcapacity would be outsourced globally to other nations. A very interesting video (to be watched from neutral pov) https://youtube.com/shorts/033AaIZohx8?si=LCX_M9FgPLk3wAb_
I think reciprocal tariffs are still okay, as long as you’re not hurting the country’s economy, but going all guns blazing will have severe impact.
After flexing trade war muscles, the US is out here importing eggs from the EU like it’s an episode of economic irony. Tariffs don’t protect economies they isolate them, distort prices, and invite retaliatory chaos. But hey, at least he's winning... in theory.
In the era of globalization, imposing unilateral trade tariffs is not a feasible option, as it can trigger a domino effect impacting all nations. While reducing the trade deficit is important, it should not come at the cost of supply chain disruptions
Literal Egg On The Face
TradingBells | IIM Kashipur 24'
1wReciprocal Tariff Rates are fair and square. Tariff Threat such as ones that are linked To Venezuelan Oil; 25 % tariff on countries(India Included) that buy oil and gas from Venezuela. This might be his tactic to support his country by blocking resources of counterparts in such a way; but it could have significant negative global repercussions.