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Let's say Trump raises tariffs on Mexico.
The European Union has threatened retaliatory measures against bourbon exports if President Trump raises tariffs.
The Peterson Institute for International Economics in Washington predicts that if Trump raises tariffs on China and Mexico, and they retaliate, then US growth will stop in its tracks for at least two years.
It increases the tax on financial transactions to collect more than $4 billion and narrow the budget deficit; lowers tariffs on capital goods with the aim of increasing investment; and raises tariffs on consumer goods to protect domestic industries.
Though it's early, the Trump administration's recent round of tariffs is already rippling out to exporters: Soybean farmers face plunging prices as China raises tariffs, Harley-Davidson will move production of motorcycles destined for the European Union out of the U.S., and BMW says foreign retaliation may hit exports from its South Carolina plant.
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Some countries could raise tariffs substantially without breaking WTO rules.
Russia and India are already raising tariffs on cars and steel.
Well, raising tariffs to reduce the trade deficit could backfire.
Some have raised tariffs, as Russia did on second-hand cars and India did on steel.
On September 4th Brazil said it would raise tariffs on 100 products.
Two days later Russia's government said it would raise tariffs on imported cars.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com