USA

Duties hit the economy

Experts estimate that the Congressional Budget Office (CBO), trade wars waged by President Donald trump with the biggest partners of the United States, will lead to the fact that the annual increase in real gross domestic product is approximately 0.1 percentage point less than expected.

Thus, the duty imposed both import and export goods, will result in the fact that in 10 years the volume of economy will be 1% less than they could be while maintaining the previously existing rules.

In turn, trump insists that the introduction of duties on foreign steel and aluminium, as well as a wide range of goods supplied from China, is a necessary step, as it will allow in the future to achieve more favorable terms at the conclusion of international treaties.

Meanwhile, for imported products, the amount of which is $284 billion, introduced the collection at a rate of from 10 to 30%, and the average is 12%. In response, partners have imposed duties on American goods by $134 billion, while the average rate was 9%.

In all events there is, however, a positive thing, which is to increase profits. In 2018, the income from pre-existing and new duties amounted to $ 41 billion, or 0.2% of GDP. In ITS to believe that in 2019, the last figure will increase to 0,3%, and in the next decade will range from 0.3 to 0.4% of GDP.

Source:news.rusrek.com
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