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Donald Trump slaps a large part of the world with a basic rate of 10% while others face even higher rates. Our correspondents answer your questions.
From Saturday, all goods imported into the United States from anywhere in the world will face at a price of 10% “basic”.
Donald Trump has announced higher rates for some countries he has distinguished such as “worst offenders” for trade.
Our correspondents answered your questions about what it means and the impact it could have.
What happens to American products made in China?
Mike Heafield, 60, in Preston, asks Graham Fraser Graham Fraser, Graham Fraser, what happens to products – like the iPhone – who are made in China by American companies?
A catchy consequence of the tariff announcement was the impact on Apple, with its 7%drop.
The American technology giant has large manufacturing bases in certain countries that are most hit by President Trump’s policy – notably China, which faces 54% prices and Vietnam (46%).
In 2019, when Trump was the first in the White House, Apple received Chinese price exemptions. Apple’s bosses hope to conclude a similar offer this time.
The Citi World Investment Bank said: “If Apple cannot be exempt this time and assuming that Apple is struck by the accumulative prices of 54% of China and does not transmit it, we estimate about 9% negative impact on the total gross margin of the company.”
In February, Apple undertook to invest more than $ 500 billion (396 billion pounds Sterling) in the United States over the next four years. At the time, Trump said that Apple’s support for American manufacturing was partly a response to its trade policies, including prices.
How do prices have an impact on American consumers?
Paul Miller, in Devon, asks Dharshini David, editor-in-chief of the economy, on the impact of prices on American consumers and if the United Kingdom could draw from it.
American buyers could be the front line victims of this trade war, destroyed by higher prices and less choice, whatever the rhetoric of the president.
And that means that producers will seek and benefit from new markets.
We saw that during the president’s first term, when Vietnam and Malaysia took advantage of the prices he imposed on China to increase the amount they sold to America.
Ironically, they are therefore in the shooting line now – and will therefore probably be in the running to sell more in the United Kingdom – good for consumers, less for competing companies
Many producers are already turning beyond established customers – think of whiskey manufacturers who look at Asia. This is likely to intensify.
Trump’s announcement can mean a straightening on the world trade card – and our own shopping lists.
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Does this have an effect on the cost of living in the United Kingdom?
Jock Scott, from Nuneaton, asks the sales journalist Nick Edser if the American rates have an effect on the cost of living in the United Kingdom.
As always, looking at the implications of prices, there is a lot of uncertainty about this. In certain circumstances, the prices of the United Kingdom could increase, in others, they could fall.
The prices announced by Trump on Wednesday will be paid by companies that import goods in the United States. This means that the initial impact of price increases is likely to appear on American consumers, if US companies reduce additional costs.
However, some economists believe that prices could strengthen the value of the dollar compared to other currencies. If the pound is weakening compared to the dollar, significant British companies in the United States will be faced with higher costs. This could then lead to higher prices of these products in British stores if companies cannot absorb the increased costs themselves.
In addition, if the British government decides to retaliate with clean prices on American products entering the United Kingdom, there is a risk that the UK prices could increase if British companies will impact additional costs to customers.
However, some economists have suggested that prices could also drop due to prices.
Swati Dhingra, economist and member of the Banque of England Monetary Policy Committee, which establishes interest rates, suggested that companies normally send their goods to the United States can rather send them to countries that do not have such high prices, such as the United Kingdom, potentially leading to a flow of cheaper goods.
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What does this mean for my pension?
Robert Jones, from Cardiff, asks Kevin Peachey, cost of living cost, on the impact of prices on our investments in pension.
There is no doubt that Trump’s announcement on prices has led to immediate movements in stock prices and is also likely to have a longer -term economic impact.
Robert and Stephen mentioned the drop in the value of their investments in pension, and the situation will be disturbing for millions of people with investments.
Experts say that investors have always had to make economic shocks. Investments, by definition, require a long -term perspective and strategy. Thus, they urge people not to panic or make instinctive decisions.
That said, for those who are about to rely on investments, this can be more worrying, although most retirement savings are moved to safer assets such as species or obligations as people approach retirement age. The state pension is not affected.
Does the United Kingdom have an “advantage over Brexit” on the EU?
Paul Naldrett from Windsor asks for the Marc Ashdown commercial correspondent if the position of the United Kingdom outside the European Union is in fact an opportunity because the EU receives prices of 20%.
Some refer to a “Brexit advantage” because the United Kingdom is only subject to 10% tariffs rather than 20% of slaps on the EU.
Not only will this limit the pain felt by British companies compared to their European neighbors, but it could present commercial opportunities.
British exporters to America could have a competitive advantage, American importers facing half of the tax by treating British companies instead of EU companies.
British companies – and consumers – could also benefit from cheaper products to find their way here instead of America if the additional costs are insurmountable.
However, there are concerns about the impact that could have on local industries if cheap products, possibly with lower standards, flood the British market.
