Moody’s evaluation house warned the US government that duties can eventually cause more harm than good in economy
US President Donald Trump described the US on Wednesday, April 2, as his government would announce his government to announce the so -called reciprocal or mutual duties against third parties.
For eurozone countries, however, and most notably the most extroverted, such as Germanythese measures that have been recovered from the “timepiece of history” will only do harm at a time when the economy she is trying to recovered From the stagnation of the past two years.
And the marketshowever, all other than liberals consider Trump’s duties, as the retreat of shares and his dollar by the mid -February. Indeed, it is indicative that Wall Street recovered last Monday, after reports that the reciprocal duties would be more targeted than expected to dive back on Wednesday, when the US president announced the imposition of 25% duties on imported cars.
The European Commission awaits Washington announcements to answer with Imposing duties on imports of US products. Brussels has already responded to the imposition of a 25% duty on steel and aluminum imports in the US (from all countries) earlier a month and is already considering the countermeasures it will receive for cars, which will hit one of the strongest sectors of European industry.
The crucial size for Brussels, however, will be the duties to be announced by the US on Wednesday, who, in view of EU officials, will be applied horizontally. In all exports of its members’ countries with a coefficient.
OR uncertainty for the Height of US reciprocal duties is largewith estimates moving from an increase in the average tariff rate of 5 to 10 percentage points. Trump himself said last week that the duties would eventually be lower than expected, which remains to be seen. The EU will, in any case, know how to burden its products and respond proportionally.
Theoretically, the reciprocal duties should aim for a correspondence between the US duties on imports from third countries and the duties they impose on their American products. This correspondence, in the view of Europeans expressed in Washington by the Commissioner of Commerce, Maros Sefzovic, exists and therefore exists US aggressive movement is not justified.
However, the US Minister of Finance, Scott Bessedhe has said that for calculating the reciprocal duties, other obstacles will be taken into account in the tradesuch as taxation to technology companies or the way enforcement of VATcomplicating the relevant calculations.
According to Gary Con Kon, former Goldman Sachs CEO and Trump’s key financial adviser during his first presidency, Washington’s measures will be announced will cause new shock to marketsbecause they will be artificially high at high levels to form a basis for negotiation with third countries.
In Sefcovic’s attempt to discuss with his US counterparts on a way out of offensive policyfrom which everyone finally comes out, the progress that was very small, perhaps because their goal is to start the discussion from their own basis.
The focus of Trump’s policy on duties exacerbates concern among consumers and businesses in the US. Americans’ inflationary expectations for the next 12 months increased at a level of over 6% and their confidence index in economy retreated At a low level of four years, raising concerns about a reduction in consumer spending that would slow down the growth.
Following the OECD and large banks that reviewed their forecasts for growth in the US, Moody’s ratings, who had reviewed 2023 with the prospects for the USA (AAA), to warn the US government that the US government has reviewed the US in 2023. duties may eventually cause more harm than good in economy.
Source :Skai
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