A sharp decline in the profits of “Siemens Energy” during the first quarter

Since he took office, US President Donald Trump threatened to impose customs definitions on a number of commercial partners, including Mexico, Canada, Europe, Colombia and India. It also imposed 10 percent definitions on Chinese commodities, and 25 percent on aluminum and steel imports.

Ultimately, the entity that bears the cost of these fees depends on the nature of the products issued by the state and the extent of their attractiveness in the global market. However, economists warn that this additional tax will throw its largest load on American companies and consumers, according to the Washington Post.

The United States is the largest importer of commodity in the world, which gives it a great influence in any trade war. It also constitutes the main export market for more than 20 countries, making exports to them as a basic pillar in the economies of many countries.

Mexico and Canada are highlighted as the most dependent on the American market, as they were threatened to impose customs definitions of 25 percent, despite their 30 -day temporary exemption period. However, this does not necessarily mean that they are the most affected, as the repercussions of the fees depend on the nature of the product more than its manufacturing place.

The most vulnerable countries are those that produce goods that can be easily manufactured in multiple places, such as clothes and agricultural products, which are mainly exported to the United States. In these cases, American importers can turn into alternative sources to avoid paying customs duties, which leads exporters to reduce prices and bear the cost of fees to maintain their competitiveness in the American market.

In this context, Gilberto Garcia Vasquez, chief economist at the Economic Observatory, explained that “when the United States can stop importing a commodity from a specific country because of the cost change, as is the case with clothes from El Salvador, this puts the economy of that country In trouble, while American consumers hardly feel change. ”

On the other hand, countries that dominate the production of a specific commodity have greater influence, as there is no incentive to reduce prices when American importers are unable to find a similar alternative to the same quality.

This was demonstrated during the first trade war in the Trump administration, according to Chad Bun, a prominent colleague at the Peterson Institute for the international economy and the former chief economist in the Ministry of Foreign Affairs, who said: “Theoretically, we can force everyone to accept lower prices because of their dependence on our market, however Reality has proven the opposite. ”

In the end, the American importers were the ones who endured the cost of customs duties, which in turn reflected on consumers in the form of high prices.

Many Chinese commodities fall within this category, as China dominates the global market for products, such as laptops and smart mobile phones, which makes American importers forced to buy them even with the imposition of customs definitions by 10 percent, due to the lack of alternatives capable of producing the required quantities With the same efficiency.

In some cases, a country with a relatively small share of the market may be able to maintain its status due to its infrastructure that enables export to the United States. For example, even with the imposition of definitions on Canada, Canadian exporters will not need crude oil and natural gas to reduce their prices, because American pipelines and refineries are specially designed to treat Canadian fossil fuels.

These economic tangles reflect the complexity of the impact of definitions, as it can cause unexpected costs even on the American industry itself. For example, the cars collected in Mexico contain parts manufactured in the United States and Canada, which means that imposing definitions on Mexico may harm US supply chains.

When Trump imposed definitions on steel and aluminum in 2018, the American steel sector witnessed a short -term recovery, but this increased the costs on other industries. In 2019, the researchers estimated that every new job resulted from these fees, which cost American companies and consumers about 900 thousand dollars annually.

It is expected that the recent definitions on steel and aluminum will lead to similar results, as fees were imposed on all exporting countries, which canceled any incentive to reduce prices to maintain the American market.

The repercussions are getting worse if the affected countries respond to imposing retaliatory definitions, which may reduce the demand for American goods in foreign markets. When China imposed definitions of American products in 2018, US exports decreased by 26 percent.

Last week, China announced the imposition of counterfeit definitions on the United States just minutes after. The Trump administration for 10 percent new fees on Chinese goods.

Vasquez concluded by saying: “It is a very bold step to impose one country, even if the United States is customs duties on its three main commercial partners: Mexico, Canada and China. Suddenly, there are additional burdens borne by consumers and industries … and this is a major self -wound for the American economy. ”