This is the week of the most radical global changes since the U.S. elections this past November. President Donald Trump plans to create a new trade partner network by punishing America’s key allies with heavy tariffs. Since winning the elections, Trump continues to take radical decisions with global implications.
This week, Trump has announced new tariffs.
With Trump’s decision, the new plan imposes a basic tariff of at least 10 percent on all countries, as we previously reported.
Trump has imposed new tariffs on several countries this year, including his biggest trading partners Mexico, Canada and China. However, the White House announced that Mexico and Canada would be exempt from the latest changes.
Trump argues that these steps will increase domestic production by making imports more expensive. However, the tariffs imposed during Trump’s first term show that this has not prevented imports. Only other (new alliance) countries have replaced the supplier countries.
The U.S. needs raw material to maintain industrial production, even in the best-case scenario.
When it’s cheaper to produce overseas, what do the billionaires who supported Trump in the election think about producing in the U.S.? And, these billionaires have billions of customers who consume their products. Additionally, these billionaires have billions of customers outside of the U.S. who are consuming their products.
The first thing that would offend these supporters would be a closed economic system. Therefore, there is nothing preventing the continuation of imports from the U.S. with new suppliers. These new suppliers will undoubtedly be countries that would be least affected by the tariffs. Turkey is going to be a very important market at this point. This is due to the fact that Turkey is among the countries least affected by these tariffs. Turkey is a country with a high potential to be a qualified supplier. Examples of these products include raw materials like machinery and mechanical parts, iron and steel products, gems and metals. Of course, we cannot assume that Turkey will be able to meet a large part of this demand for imports. However, Turkey can increase its small share of current U.S. imports by a factor of 3 to 4 to help meet trade needs.
