Tariffs

  • Breaking Down France's Digital Tax

    In July, France’s parliament ratified a new law to tax big digital tech firms making it the first country to pass a tax law of this manner. Paris’ new tax scheme triggered criticism from the Trump Administration and is further complicating the transatlantic relationship. This edition of the EconoGraphic explains the motivation behind taxing digital technology firms more aggressively, the way that the French tax will work, and the potential impacts and response to the tax.
  • Washington Brands Beijing a Currency Manipulator as Trade Tensions Mount

    While the US Treasury Department’s August 5 decision to label China a “currency manipulator,” is “largely symbolic,” it could be a sign of “more aggressive countermeasures,” between the two countries as they struggle to reach an agreement on their trading relationship, according to Bart Oosterveld, director of the Atlantic Council’s Global Business and Economics Program and C. Boyden Gray fellow on global finance and growth.


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  • Transatlantic Trade Update with Dan Mullaney, Assistant US Trade Representative for Europe and the Middle East


    On July 29, the Atlantic Council’s Global Business & Economic Program’s EuroGrowth Initiative hosted a roundtable discussion on transatlantic trade, featuring Daniel Mullaney, Assistant US Trade Representative for Europe and the Middle East.


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  • Trump Announces More Tariffs to Put Pressure on Beijing

    US President Donald J. Trump escalated his growing trade dispute with China on August 1, announcing that the United States would place additional tariffs of 10 percent on the so far un-tariffed $300 billion dollars’ worth of Chinese goods, effective September 1. These tariffs will be added to the 25 percent tariffs already on $250 billion dollars of goods, meaning that nearly all Chinese exports to the United States could be facing tariffs.


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  • The United States Doesn’t Need Tariffs to Level the Playing Field

    The US administration just announced a new $4 billion list of European Union (EU) products which it could apply additional tariffs on in response to the ongoing dispute between both sides of the Atlantic over government subsidies to aerospace companies Boeing and Airbus. While the United States thinks it can create better economic outcomes by forcing concessions out of Europe, this new action will only continue the lose-lose spiral of threats gripping the transatlantic trade relationship. Washington could pursue a different strategy, however, by legitimately working with Europe to reduce government subsidies, while also taking tangible steps to strengthen antitrust enforcement at home. The transatlantic trade environment, growth prospects, and public finances would greatly benefit from such a change in approach.


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  • Whom Do Tariffs Actually Hurt?

    While there has been much debate about who bears the cost of US tariffs, it is US importers of Chinese goods, and not China, that have to pay. Many of these tariffs significantly increase the price of intermediate goods, such as auto parts and computer components, needed by US manufacturers to produce competitive products in the United States. The additional cost of higher tariffs also forces large numbers of US consumers to pay.


    An analysis released by economists from the Federal Reserve Bank of New York, Princeton University, and Columbia University in March asserted that Americans were paying “the full incidence of the tariff.” And a more recent Goldman Sachs Research report cited two academic studies showing that “Chinese exporters did not absorb any of the tariffs in their profit margins.”


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  • US-EU Auto Tariffs: What’s at Stake?

    Escalating trade tensions between the world’s major economies are widely considered the greatest threat to the global economy’s health. Following the White House’s cancellation of its threatened tariffs on all Mexican imports on June 7, attention swiftly turned back to the brewing US-China trade war. This edition of the EconoGraphic, however, puts the focus on how US tariffs on cars and car parts might disrupt transatlantic trade flows. The graphic highlights the importance of the transatlantic auto trade for the EU and US economies, outlines the role of European car manufacturers and suppliers in the US auto supply chain, and previews the potential impact of US car tariffs on both economies.

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  • US Senators Warn Against Tariffs on Mexico

    The migrant flow from Central America to the United States is a serious problem that needs to be addressed, but cannot be solved through the use of tariffs, two US senators said at the Atlantic Council on June 12.

    On May 30, US President Donald J. Trump threatened to impose a 5 percent tariff on all Mexican goods by June 10 unless the Mexican government did more to help prevent migrants from reaching the US border. He further warned that this tariff would be increased by five percentage points each month until satisfactory progress was made. On June 7, Trump announced that a deal had been struck with the Mexican government that saw the tariff threat dropped, although it could be reinstated if the there is a “problem.”


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  • US-Mexico Deal Reached: The Economic Reasons for Avoiding Tariffs

    On June 12, the Atlantic Council’s Adrienne Arsht Latin America Center in partnership with POLITICO, hosted a timely event to discuss the economic costs of tariffs on Mexican imports for US consumers. The event was held less than a week after a US-Mexico deal was reached.


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  • Infographic: Costs of a Five Percent Mexico Tariff on US Consumers

    On June 10, without a deal, the United States will place a 5 percent tariff on all Mexican products, with the potential to escalate by 5 percent each month until October, reaching a potential maximum of 25 percent. The US tariffs, levied in response to President Trump’s demand that Mexico stop all migration, would have immediate effects on US consumers and businesses. What are the potential effects of US tariffs at the state and national levels?

    This new Adrienne Arsht Latin America Center infographic distills some of the economic ramifications that would accompany tariffs.


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