American companies bought considerably fewer goods abroad in April. The import fell by almost 20 percent, after the input had risen hard for a month. This is according to figures from the American statistics agency Census Bureau.
The fluctuations probably have everything to do with the taxing policy of US President Donald Trump. At the beginning of April it came up with import duties for almost all countries in the world.
That means that American companies and households have to pay an extra tax if they buy products in another country. For example, Americans spend 10 percent extra if they order something in the Netherlands.
Trump may sound like music to the fall in import. He wants Americans to buy as much as possible in their own country and that foreign companies move their factories to the United States.
Whether the decreased import is actually good news for the Americans is questionable. Many companies have quickly purchased a lot of foreign goods before the taxes came into force. For example, in March the American import was 30 percent higher than a year earlier.
Criticism of Trump tax policy
In any case, there are doubts about the usefulness of Trumps tax policy. For example, economists fear for rising prices because the extra taxes make foreign products more expensive. In some cases there are American alternatives for foreign products, but that certainly does not apply to all goods.
Furthermore, the question is whether many companies really want to move their factories. For example, the whimsical policy of the president makes it difficult for companies to calculate whether movement is worth it.
In addition, some countries consider countermeasures. China and the European Union in particular have threatened with counter -taxes if the US holds on foot. The Americans are currently conducting negotiations with European and Chinese representatives to reach a trade agreement.
That is not without a struggle. Last week Trump threatened to increase the taxes for European goods to 50 percent, because according to him the negotiations went awkward. A few days later he postponed the increase again.
On Friday, the president said on his own Platform Truth Social that the Chinese do not comply with agreements, although he did not make it clear which agreements are involved.
US Companies Bought Significant Lerwer Goods Abroad in April. Imports Fell by Nearly 20 percent, After Imports had Previously Risen Sharply the Month Before. This is accordance to figures from the US census desk.
The Fluctuations are Likely Due to the Tariff Policy of US President Donald Trump. The introduced import duties for Almost all Countries in the world at the beginning of April.
This means that us companies and households have to pay an extra tax when they buy products in another country. For Example, Americans are 10 percent extra if they order something in the Netherlands.
The Decrease in Imports May Sound Like Music To Trump’s Ears. The Wants Americans to Buy As Much as Possible in Their Own Country and For Foreign Companies to Move Their Factories To The United States.
Whether the decreased import is actual good news for the Americans is Questionable. Many Companies Quickly Purchased A Lot Of Foreign Goods Before the Levies Came Into Effect. For Example, US Imports in March Were 30 percent Higher than a year Earlier.
Criticism or Trump’s Tariff Policy
In any case, there are Doubtts about the usefulness of Trump’s Tariff Policy. For Example, Economists Fear Rising Prices because the extra Taxes Make Foreign Products More Exensive. In some Cases there are American alternatives to Foreign Products, but this is Certainly not the Case for Alls.
Furthermore, IT is Questionable Whether Many Companies Really Want To Move Their Factories. For Example, The Erratic Policy of the President Makes It Difficult for Companies to Calculate Whether Relocation is Worthwhile.
In Addition, Some Countries Are Considering Countermeasures. China and the European Union in particular have threated retaliatory tariffs if the us stands firm. The Americans are currently negotiating with European and Chinese representatives to Reach a Trade Agreement.
That Doessn’t Happen Without A Struggle. Last week, Trump threated to raise Tariffs on European Goods to 50 percent because Said Negotiations Were Difficult. A few days later he postponed the increase again.
On Friday, the President Said Own Own Platform Truth Social That the Chinese Are Not Keeping to Agreements, Althegh He did not make it clear which agreements he was referring to.