The United States may impose 100% tariffs on this field. What will be the impact?-United Petroleum Equipment Co., Ltd

The United States may impose 100% tariffs on this field. What will be the impact?

time 2024-03-19 11:06:18 source：

On March 17, local time, Bloomberg reported that former U.S. President Donald Trump warned that if he fails to win the U.S. presidential election in November, it will be a "massacre" for the U.S. economy. At the same time, Trump also threatened to impose 100% tariffs on cars produced outside the United States if he returns to the White House.

When talking about imposing tariffs on imported cars and foreign influence on the U.S. auto industry, Trump said: "We will impose 100% tariffs on every car that comes in. If I am elected, you will not be able to sell these things. "He added: "Looking at it now, if I had not been elected... it would have been a bloodbath for this country."

When asked about the meaning of "carnage," the Trump campaign noted that auto manufacturing is a pillar industry in Ohio and that Biden's policies will bring an economic "carnage" to the auto industry and auto workers. ".

Wall Street has already anticipated Trump's latest tariff warning. In its latest report, Barclays predicted that if Trump wins the U.S. presidential election again in November this year and imposes a high 20% tariff on European automakers, the euro-dollar exchange rate may fall back to parity.

Trump has previously said that if he wins the White House again, he will impose tariffs on all imported goods, including those from the European Union.

Ajay Rajadhyaksha, chairman of Barclays Global Research, said that if Trump is re-elected as U.S. president and he imposes a 10% tariff on all EU imports, the euro is expected to fall to 1.05 from the current level of around 1.08, but if Trump's 20% tariff on EU cars could bring the euro closer to parity with the dollar.

The dollar could rise as much as 3% if Trump returns to the White House later this year and imposes more trade tariffs, Barclays strategists including Themistoklis Fiotakis wrote in a note.

They also said they expected higher U.S. fiscal spending and weaker commitments to NATO, which would further boost the dollar.

It is worth mentioning that the last time the euro fell to parity against the U.S. dollar was in the summer of 2022. At that time, affected by the full-scale conflict between Russia and Ukraine, European energy costs soared, causing a heavy blow to the European economy.

In addition, Boockvar, chief investment officer of Bleakley Financial Group in the United States, warned: "I think if we impose a 60% tariff on any country, it will be an economic disaster, let alone our huge Trading partner China. Unfortunately, the president can enact these tariffs on his own without congressional scrutiny."