Some say it’s a trade war. Some others that it is a structural basis in politics, following the general trend of introversion in the world. Some argue that it is a trick, a bargaining chip. In any case, the questions arising from his eventual decision Donald Trump to impose tariffs on imported goods, is basically two: 1) What does it mean and 2) Is it serious? Will the next US president do it?

Let’s start with the second question. Is Trump serious about tariffs? An answer that markets all over the world are anxiously awaiting. Analysts in the US do not leave much room for… misunderstandings. “Trump is getting serious and even more serious than ever…”, most people estimate.

His choice Republican president to target, in the first instance, the Mexico, Canada and China shows that he is not only not bluffing, but is determined to carry out his program to the fullest extent. Trump wants to have manufacturing inside the US to reduce unemployment. Tariffs, among others, on imported products serve exactly these two purposes.

It is no coincidence, then, that Trump chose to… start with Canada and Mexico, that is, with the large countries on the US border, and of course with China, where the colossal production units are located. In addition, China is considered – and rightly so – the upcoming first power on the planet, precisely because with the policies it applies to trade and the size of its internal market, it has set its sights on being the first power in the coming decades.

With the above data, Trump does not intend to change his line. He will go ahead with his plan regardless of the backlash. What are the steps he will take from the very first days he officially returns to the White House?

For starters, he’s willing to change the Mexico-Canada-US trade deal he signed in his first term on the first day of his second term. The imposition of tariffs is inconsistent with the principle of free trade, in the absolute sense. Yes, the products will be traded freely, but with a “cap” on the rate of tax that will be imposed.

What are the tariffs Trump wants to impose?

Many are hearing and reading about the tariffs that Donald Trump wants to impose on imported products. However, they themselves do not have a clear picture of what it is about. The answers to the following five questions clarify the picture…

What is the tariff?

This is a tax on a product manufactured abroad. The theory is that taxing items when they come into a country makes them more expensive, so people buy cheaper local products instead.

What does Trump propose?

Trump plans 25% tariffs on all goods imported into the US from Mexico and Canada and an additional 10% on existing tariffs on goods from China.

Who…pays?

Tariffs are paid by the domestic company importing the goods, not by the exporting foreign country. But Trump insists the tariffs will hurt other countries, for example they may be forced to lower their prices so their products can remain competitive in the huge US market.

Why is Trump doing this?

Trump says the tariffs will remain in place until Canada and Mexico crack down on drugs and illegal immigrants crossing the border. China’s tariffs will last until it cracks down on fentanyl being smuggled out of the country, he says, but the real reasons are different.

What is a trade war?

A trade war breaks out when countries try to attack each other with taxes and quotas. By making products from other countries more expensive to import, other countries’ economies are hurt, while domestic trade is boosted. We got a first taste of a trade war during Trump’s first term in the White House. China warned today that “no one will win” in another. Trump has a different view…