2018-03-01 07:35:00 Thu ET
technology antitrust competition bilateral trade free trade fair trade trade agreement trade surplus trade deficit multilateralism neoliberalism world trade organization regulation public utility current account compliance
Trump imposes high tariffs on steel (25%) and aluminum (10%) in a new trade war with subsequent exemptions for Canada and Mexico. The Trump administration's Trade Act Section 232 investigation suggests that the main sources of U.S. steel-and-aluminum trade deficits are Canada, Europe, Mexico, and China.
In light of both Section 301 and Section 232 investigations, the steel and aluminum tariffs seem to target China and the European Union. There are a pair of pertinent problems with imposing tariffs on foreign imports of this nature. First, the tariff tactic is a massive diplomatic gambit. In effect, this tactic may pose the imminent risk of retaliation from multiple countries. Second, this strategic move can inevitably lead to higher consumer prices from food cans to cars and airplanes insofar as these products involve the use of steel or aluminum. These price increases can thus feed back to fuel higher inflation in America. Also, American households and firms may experience higher costs and so lower disposable income. The resultant decrease in aggregate demand can be detrimental to U.S. economic output, employment, capital investment, and so on. When push comes to shove, the law of inadvertent consequences counsels caution.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-05-02 06:32:00 Wednesday ET
What are the primary pros and cons of free trade or fair trade in the current Sino-American quagmire? Free trade means allowing goods and services to move a
2019-07-19 18:40:00 Friday ET
We can decipher valuable lessons from the annual letters to shareholders written by Amazon CEO Jeff Bezos. Amazon is highly customer-centric because the wor
2020-06-17 09:23:00 Wednesday ET
Successful founders focus on their continuous growth, passion, perseverance, and the collective wisdom of most team members. William Ferguson (2013) &
2020-02-26 09:30:00 Wednesday ET
Goldman Sachs follows the timeless business principles and best practices in financial market design and investment management. William Cohan (2011) M
2023-06-07 10:27:00 Wednesday ET
Anat Admati and Martin Hellwig raise broad critical issues about bank capital regulation and asset market stabilization. Anat Admati and Martin Hellwig (
2018-10-19 13:37:00 Friday ET
PayPal earns great fintech reputation from its massive worldwide network of 250+ million active users. As PayPal beats the revenue and profit expectations o