E-Paper
Not just China, these US allies too could suffer the most by Donald Trump's tariffs
President-elect Donald Trump has pledged to levy tariffs on imported goods as part of his second-term economic strategy.
President-elect Donald Trump has pledged to levy tariffs on imported goods as part of his second-term economic strategy. The main country on Trump's hit list to face harshest penalties is China. However, some other nations, including allies of the United State, will be also affected.
During his campaign, Trump promised to employ tariffs to promote American companies, imposing up to 60 percent levies on Chinese goods and up to 20 percent on imports from other nations.
All tariff plans are required to be passed from Congress, but several economists have already begun making predictions about how they would affect the world economy.
Europe would be severely affected if…
Speaking to Newsweek Dr. Rishav Bista, who works at Texas Christian University as an associate professor of economics, said: “While (Trump's tariff policy) stands to affect the trade relationship with China more intensely, it is expected to affect trading relations with the EU as well.”
Edward M. Feasel, president at the Soka University of America, told the outlet that if Trump follows through on his pledge to raise tariffs on goods and services, and even more on China, it will undoubtedly affect exports and gross domestic product (GDP) in our allies' and other countries' economies.
Also Read: Donald Trump back in White House: World leaders who win and lose from his return
Europe would be severely affected during a “contained trade war” in which the United States is expected to raise tariffs on China to 25% on half of non-critical US imports and to 5% on the rest of the globe, excluding Canada and Mexico, predicts The Financial Times and Allianz Trade's model.
What is at stake for China?
China is expected to lose $34.2 billion in 2025 and 2026, while European countries are anticipated to lose an amount of $38.6 billion.
According to the model, China's $125.3 billion in 2025 and 2026 would be at stake, while Europe would suffer a a loss of $124.8 billion in case of a “fully-fledged trade war” scenario that imposes 60% tariffs on Chinese exports and 10% on all other countries.
