US President Donald Trump announced the introduction of restrictions on imported goods from Canada, Mexico and China. Moreover, Trump is ahead of the EU about the possibility of introducing similar approaches.
About those why Trump plans to introduce restrictions on goods from these countries and as a result on the economy of Ukraine, read from the journalist’s perspective RBC-Ukraine Alika Sakhna.
Zmist:
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It's time for Trump to introduce a meeting
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How does it impact the Ukrainian economy
Now Trump introduce Mita
Donald Trump on Saturday, February 1st, having signed a decree to restrict imports from Canada, Mexico and 10% on Chinese products. According to Trump, the reason for this decision was illegal migration and transit of the narcotic drug fentanyl, which he pledged to combat during his election campaign.
At the end of the day, Prime Minister of Canada Justin Trudeau and President of Mexico Claudia Sheinbaum agreed to strengthen their bilateral bonds. Both countries have voiced the need to introduce proportional restrictions on imports from the United States. In addition, the Minister of Finance of Canada, Dominic Leblanc, has published a list of American goods, which must be submitted to the press service. They have the potential to reach 30 billion dollars, and this is the first stage of Canada's transfer to the USA.
French President Emmanuel Macron and German Chancellor Olaf Scholz also announced their readiness to introduce a US tax regime based on the fact that Trump is here.
Nowadays, China, instead of establishing counter-approaches to the newly elected US President, plans to undermine Trump’s new meeting with the World Trade Organization (SOT). Protesting an appeal to the COT does not bring any unnecessary costs or threats to Washington. The system for regulating the SOT superechok was actually suspended in 2019, if Trump blocked the appointment of judges to consider the appeal.
“Trump is trying to solve the problem of the trade deficit in such a manner. It also appears that we are more politically powerful, from Canada and the country of the EU, about which it is impossible to talk about this. The first stage of negotiations about any actions of US trading partners, either in the economic or in the political sphere. any discounts in exchange for investments and the development of important geopolitical feeds,” says RBC-Ukraine Oleksandr Parashchy, a senior analyst at the investment company Concorde Capital.
On the thought of Parashchy, the remaining decisions of the United States – This is the global game of Trump, who wants to negotiate with each other, the EU, if the edges unite, they may have greater negotiating power than ever.
The expert adds that goods from all major US trading partners will become more expensive due to increased tariffs, which will directly contribute to rising inflation in America itself. Therefore, the indicators of inflation, in other words, may be much higher, since Americans have begun to switch to food after a peak level of live prices of over 9% in early 2022.
Financial analyst Andriy Shevchyshin confirms that Trump is not bluffing, but in this way he wants to balance the trade balance, having already completed his first term.
It seems likely that Trump first voted to introduce a 25% cut on steel and a 10% cut on aluminum for all countries that export goods to the United States in 2018. However, this year the United States settled with Canada, Mexico and the European Union, which ended the temporary shutdown. However, the stench is lost for such countries as China, Japan, and New Korea.
Following Shevchishin’s words, even before Trump’s inauguration, most world analysts lowered their forecasts for US GDP, estimating that this reduction will often be due to harsh protectionist policies.
“It’s hard to tell how the countries will react to the new meeting. At the hour of the first term, Trump lashed out at Europe, but did not enter the meeting, because Europe took action. Infectiously, his position is harsh, and Trump is ready to move forward. tariffs should be brought up to an increase in prices, but it is important to justify them. The US Federal Reserve also raised the rate without changes and is watching for the market reaction,” says Andriy Shevchyshyn.
How long will it take for negotiations between the United States and other countries to ease tariff barriers? Experts simply cannot agree. However, for the past three years, Donald Trump has agreed with Mexico and Canada to impose a 30-day suspension.
How does this contribute to the economy of Ukraine
As the trade war flares up, Ukraine’s economy may face a blow, even though our country is already dependent on assistance from the EU, the USA and Canada, and is also actively trading with China. For example, according to data from the National Institute of Strategic Research, China will become another trade partner of Ukraine after the EU in 2024. Trade from China amounted to 16.8 billion US dollars, or perhaps 15% of global trade.
“It is necessary to watch out for the development of prices between the US and the EU, as well as the European Union and our main trading partner. However, unfortunately, the positive results are not easy to see. Like the economy of Canada and Great Britain There is no need to worry, but this could lead to a shortening of international aid for Ukraine. There is a significant amount of financial support, especially from the EU and the Great Simka region. get stuck help from the side of the United States, then, unfortunately, the situation for us will become even more complicated,” said Oleksandr Parashchiy.
In his words, as a result of the trade war, the songs of a third country may win, but not get involved with This conflict. However, in my opinion, the risks for Ukraine are great both through the increased cost of imports and the shortening of international aid.
Andriy Shevchyshyn appreciates that all countries and other countries suffer in the trade war. In short, through possible exchanges, according to Shevchishin, the deterioration of the situation in the corporate and sovereign sector will depress the European economy, and will have a negative impact on Ukraine. However, it will be possible to say for sure that sooner or later, if Trump and the countries with which he is negotiating will reach some final decision.
It seems that US President Donald Trump has promised to take 100% of the cut on goods from the BRICS countries, where, look out, enter Russia, where the stink is believed to be from the US dollar. Read in our material why Trump is threatening the BRICS countries and those in safe dollars.
When preparing the material, comments were made for RBC-Ukraine from the analyst of the analytical department Investment company Concorde Capital Oleksandr Parashchiya and financial analyst Andriy Shevchishina, as well as data from the websites of the National Institute for Strategic Research, CNN, X, Reuters, Euronews and BBC.
