Hey there! Have you ever heard about Davos? It’s a place in Switzerland where important leaders from around the world meet every year to talk about big ideas and plans.
This year, at the World Economic Forum in Davos, US President Donald Trump talked about something called tariffs. He said that companies making products outside the United States might have to pay a lot of money to bring their goods into the country. But if they make things inside the US, they could pay less in taxes!
So, what’s a tariff? Think of it like a special fee or tax that countries charge on things coming from other places. It’s like when you have to pay extra to get a cool toy shipped from another country.
Many other leaders at Davos had thoughts about this. Ngozi Okonjo-Iweala, who is the head of the World Trade Organization (that’s a group that helps countries trade fairly), said that starting a tariff war isn’t good for anyone. She warned that if countries started charging high tariffs on each other, it could hurt the world economy, just like what happened many years ago.
Valdis Dombrovskis, a leader from the European Union, said that raising tariffs isn’t the best way to solve problems. He thinks it’s better to work on making things fair for everyone.
Christine Lagarde, the President of the European Central Bank, said that Europe needs to be ready for any changes because of these new tariffs.
All in all, these leaders are talking about how to make trading between countries fair and good for everyone. It’s important because it affects things like the price of toys, clothes, and even technology that we use every day!
What do you think about this? It’s pretty interesting how decisions by leaders can affect people all around the world!
Reference(s):
Leaders grapple with their own message as Trump 2.0 debuts at Davos
cgtn.com
