Written by Michael Thervil
Photographer unknown
Are the actions of American President Trump correct when it comes to imposing tariffs on countries that import into America? For many that oppose President Trump's action the answer is no, but for others that understand his rationale and have a firm grip on economics, the answer is yes. On the one hand, President Trump's logic of not allowing other countries to take advantage of America by imposing tariffs on imported American goods and products into their country while not paying their fair share in return is exploitative in its very essence. This is what President Trump wants to address and make right while boosting America cash flow in it’s monetary system. But the question is at what cost? The world has been operating like this for a very long time and there are many countries that are fighting this change.
It is this fight that has brought about the current trade war that the world is finding itself in. With countries like Mexico, Canada, and China essentially teaming up in a show of support for one another against President Trump's trade tariffs; Trump himself has not ruled out the application of further increasing the percentage of tariffs these countries would have to pay. Currently Canada has threatened to impose a 25% tariff on the importation of American dairy, meats, spices, sugar, wine, honey, rubber, luggage and cases, wood, carpet, clothing and textiles, leather, hand tools, firearms, and tobacco. These are items used every day by Americans; the Canadian tariffs were supposed to go into effect today but are currently suspended for roughly 30 days.
Although Mexico has threatened to impose tariffs on American goods and products being exported to its country, it has since backed down from imposing their first round of tariffs on America. Mexican tariffs are also suspended for 30 days. The question is why are both countries stalling when it comes to imposing tariffs on America? The answer seems to lie in the demands of President Trump - and that is the agreement of both countries to deploy their military assets to their respective borders in order to curb the flow of crime, fentanyl and money laundering, but primarily for the curbing of fentanyl. Bilaterally, Mexico demanded that America do more to stop the trafficking of weapons into Mexico; President Trump agreed.
Fentanyl being 50 times stronger than heroin and 100 times stronger than morphine, is a deadly synthetic opioid that is cheaply made and can be “cooked” in as easy as three steps and can be synthesized in less than a day. Will the exchange of both Mexico and Canada’s military presence on the northern and southern American border in exchange of stopping American sanctions curb the flow of fentanyl into America? The likely answer is no. Since fentanyl is a synthetic drug and the recipe for its creation is already out there, and it can easily be made within the confines of America; it’s difficult to “put the genie back into the bottle”.
When it comes to China, it has placed a 10% tariff on certain American exports into its country. China has additionally placed sanctions on several American companies such as google, Illumina an American biotech firm, PVH Corp which is an American clothing conglomerate, and tesla. China has also imposed a 15% tariff on American LNG (Liquefied Natural Gas) and coal as well as a 10% tariff on American crude oil, large engine parts, and agricultural machinery.
China is also placing export controls on rare earth minerals (critical minerals) to America such as molybdenum, tellurium, tungsten, indium, and bismuth. These rare earth minerals (critical minerals) are used to develop advanced technologies in America. Tighter regulations regarding the export of these minerals could cause major disruption to American industries that rely on the importation of these minerals from China.
While many geopolitical pundits downplay the trade war as a game of “tit for tat”, the only people that are going to suffer in the end are the average people in America and elsewhere around the world. Some people see President Trump as “the one who kicked the hornets’ nest” while others view him as an American leader who is staying true to his campaign promise of “putting America first”. No matter how you see it, like it or not it could be just one more step to World War 3.
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