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Donald Trump slaps most of the world with a baseline fee of 10%, but others face an even higher percentage. Our correspondents will answer your questions.
Starting on Saturday, most goods imported into the US from anywhere in the world will face a 10% “baseline” tariff.
Donald Trump has announced higher rates in some of the countries he chose as the “worst criminals” of trade.
Our correspondents have answered your questions about what this means and the potential impact it may have.
Will tariffs lead to a stagnant global economy?
David Rush of Yeovil asks Darcini David, assistant economics editor. Do you ask if tariffs will lead to a stagnation in the global economy following a decline in the supply of foreign goods to the United States and a reduction in US exports?
This is a very real risk.
The tariffs introduced by President Trump will be the largest collection to compete with American consumers in almost a century.
If they were introduced and remained, then the amount purchased by the Americans, the world’s biggest shoppers, could be a serious dent in the world’s biggest shoppers from other parts of the world.
And those ready to branch out for higher prices for customs duties will spend less on other things.
American exporters will suffer if retaliation occurs threatened by other countries. Therefore, there is a concern that not only the US, but the global economy as a whole, may slow down reliance on trade flows.
But as you say, the natural trend is because of the countries that have been hit hardest, from China to Vietnamese apparel manufacturers – the country that has been the hardest to boost sales in other markets.
It may appeal to consumers, but obviously it could be a disadvantage to companies in these target markets.
What happens to US products made in China?
Mike Heafield, 60, of Preston, told senior technology reporter Graham Fraser that he was making a product made in China by a US company – what will happen to products like the iPhone?
One of the eye-catching results of the tariff announcement was its impact on Apple, with its share price falling 7%.
The US tech giant has large manufacturing bases in some of the countries that have hit the biggest clashes with President Trump’s policies, particularly China and Vietnam (46%), which face 54% tariffs.
In 2019, when Trump first came to the White House, Apple was given a Chinese tariff exemption. Apple’s bosses hope to make a similar transaction this time.
Global Investment Bank Citi said: “If we assume that Apple is now exempt and that Apple is hit by a cumulative 54% Chinese tariff and will not pass it, we estimate a negative effect of approximately 9% on our gross profit.”
In February, Apple pledged to invest more than $500 million (£396 million) in the US over the next four years. At the time, Trump argued that Apple’s support for US manufacturing was partially in response to his trade policies, including tariffs.
How does customs affect our consumers?
Paul Miller of Devon asks Associate Economics editor Darcini David about the impact of tariffs on US consumers and whether the UK can get from them.
US shoppers, regardless of presidential rhetoric, are the forefront victims of this trade war, and can be devastated by higher prices and fewer choices.
And that means producers will look for and utilize new markets.
In his first term of office, he saw things like Vietnam and Malaysia used tariffs he imposed on China to increase the amount he sold to the United States.
Ironically, they are on the current shooting line as a result – and will likely compete for selling more to the UK – which is good for consumers, not for competing businesses
Already, many producers are turning their eyesight beyond their established clients. I believe that whiskey makers are heading towards Asia. It could be strengthened.
Trump’s announcement may mean a rollout of the world’s trade map and our own shopping list.
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Does this affect the cost of living in the UK?
Jock Scott, from Nuneaton, asks business reporter Nick Edser whether US tariffs will affect the cost of living in the UK.
Looking at the meaning of tariffs, as before, there is a lot of uncertainty about this. In some circumstances, prices in the UK could go up, while in others they could go down.
The tariffs announced by Trump on Wednesday will be paid by companies importing goods into the United States. This means that if American companies pass on extra costs, the initial impact of price increases is likely to be on US consumers.
However, some economists believe that tariffs can strengthen the dollar’s value over other currencies. When the pound becomes weaker against the dollar, British companies will import goods from the US. This could result in higher prices for these items in UK shops if companies are unable to absorb the increased costs.
Additionally, if the UK government decides to retaliate with its own tariffs on US goods that enter the UK, UK companies can potentially raise UK prices if they hand over extra costs to their customers.
However, some economists have suggested that prices could also fall as a result of the fees.
Swati Dhingra, an economist and member of the Bank of England’s Monetary Policy Committee, suggests that companies that normally send goods to the US can send them to countries like the UK that do not have abrupt tariffs.
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What does this mean for my pension?
Robert Jones, from Cardiff, asks living correspondent Kevin Peachy about the impact of tariffs on pension investments.
There is little doubt that Trump’s announcement on tariffs has led to immediate stock moves. It could also have long-term economic impacts.
Robert and Stephen have mentioned the decline in value of pension investments, and the situation will be unsettling for millions of people with all kinds of investments.
Experts say investors have always had to ride the economic shock. By definition, investment requires long-term outlook and strategy. Therefore, they are urging people not to panic or make knee decisions.
That said, for those looking to attract investment, most pension savings may be even more concerned, despite the fact that people are being transferred to safer holdings like cash and bonds as people approach retirement age. State pensions are not affected.
Does the UK have more “Brexit benefits” than the EU?
Paul Naldrett of Windsor asks business correspondent Marc Ashdown if the UK position outside the European Union is in fact an opportunity, as the EU is given a 20% tariff.
Some people are referring to “Brexit benefits” because the UK is only 10% tariffs, not 20% in the EU.
It could not only limit the pain that British companies felt compared to their European neighbors, but also present opportunities for trading.
UK exporters to the US could be competitive, and US importers face only half the tax by dealing with UK companies rather than EU businesses.
UK businesses and consumers can also benefit from cheap goods that find a way here instead of America if the additional costs prove insurmountable.
However, if cheaper products, perhaps on lower standards, are flooded with the UK market, there are concerns about the impact it will have on your country’s industry.
