“Argentina sells approximately US $ 6,500 million per year to the US”he pointed to Scope The specialist in International Trade, Marcelo Elizondo.
After recognizing that “Donald Trump is right when he says that the US admission tariff of third countries’s products was low”he explained that what the American president did was Upload them to the average of tariffs that each of the other countries charges to the US products.
He argued that “We more or less charge 10% on average” to American products, which is why Trump now rises 10% tariffs.
Faced with this increase, he considered that “Most likely to have to lower the price to which our products are sold in the US”. The alternatives are that The Argentine exporter copper less or that part of the new tax is absorbed by the importer. But he warned that it is expected that “In most cases the importer drops the price to get to what he can pay and the exporter ends up charging less.”
Regarding Milei’s efforts in the US, Elizondo said that “Probably what the president will try to do now is to negotiate a decline from that 10% for some products reciprocally, which is what Milei calls the free trade agreement.” He cited as possible cases to minerals and energy.
It should be remembered that these negotiations are conditioned by Argentine belonging to Mercosur that establishes a Common tariff policy for member countries.
The global economy, towards a slowdown
“The world enters a deceleration process, not a loud -type crisis, but of deceleration,” Elizondo anticipated.
The specialist evaluated that the economy of the first power It will be affected because inflation is going to rise and will lower the quotes of companies. But also considered possible that ”Simultaneously there is an investment process Because it is a very large market with high purchasing power and justifies that large companies invest in the US to supply the local market. ”
He also stressed that the northern country “has a very international economy profile because it has stood out for producing in large technologies, has sent the most rudimentary manufacturing to other countries from which it matters and that is what Trump wants to recover with these tariffs, trying to make companies return to the US. ”
He warned that “if the rest of the world begins to put compensatory tariffs or restrictions and obstacles, I think The balance will be negative for the US. And if what comes into crisis is Washington’s relationship with the other great economies of the world, basically with Europe, with China, with Japan, with Canada, The world goes towards a slowdown, not a crisis. I do not imagine a recession, although it can happen, but for what happens I think other components have to be incorporated, it only does not reach, but a slowdown, a weakening of the economy. ”
Source: Ambito
