Hey there! 👋 Have you heard about President Trump’s new plan about trade? Let’s break it down together!
What’s happening?
On Thursday, U.S. President Donald Trump signed a paper (called a memorandum) saying that the United States wants to make trade more “fair” with other countries. He calls it “reciprocal tariffs.” But what does that mean? 🤔
What’s a tariff?
A tariff is a tax that a country adds to goods (like toys, cars, or phones) that come from other countries. This can make those goods more expensive.
What are “reciprocal tariffs”?
President Trump says that if another country charges a tax on goods coming from the U.S., then the U.S. will charge the same tax on goods coming from that country. So, it’s like if your friend charges you two candies for a cookie, you would charge them two candies for a cookie too! 🍪🍬
Why is this happening?
The U.S. government wants to reduce something called a trade deficit. This means they buy more from other countries than they sell to them. They think this plan will make trade more fair.
What do experts say?
Some people, like Gary Hufbauer from an economics institute, think that raising tariffs might hurt the U.S. economy. Higher tariffs could make things more expensive for everyone. 😕
What could happen next?
Other countries might decide to raise their tariffs too. This could lead to trade disagreements and make it harder for countries to trade easily.
Why should we care?
Trade affects the prices of things we buy every day, like clothes, games, and phones. When countries change trade rules, it can change those prices.
Let’s keep an eye on this story to see how it unfolds! 🌍
Reference(s):
Trump signs plan to impose 'reciprocal' tariffs on trading partners
cgtn.com
