US TARIFFS

Question 1

What protectionist actions have been taken by the US?

Answer 1

1. 10% tariff on all countries
2. 25% tariff on a steel, aluminium and cars
3. 145% on all goods from China (although semiconductors were made exempt)
4. Tariffs on solar panels at 3500%

Question 2

How have China retaliated?

Answer 2

1. China set an 125% on the US
2. China banned the sale of some rare earth metals to the US
3. Halted soy bean imports from the US - buy from Brazil instead (30% increases in 2023)

Question 3

What are the macroeconomic impacts of Trump’s protectionism?

Answer 3

1. Ford have announced price increases
2. 12% fall in tourism to the US
3. Stock market fell by 3% in 2025 - negative wealth effect
4. Dollar fallen to a 3 year low
5. US inflation expected to rise