Question

what are the possible reasons for intervention by Donald Trump on international trade ?

Answer 1

International trade is the activity of trading of goods and services across all the countries beyond the sea boundaries. Unless domestic trade, The process of international trade involves huge complex procedures of exchange of the goods and services in between more than one nation across all the boundaries of the ocean trading route. In order to boost the mass volume of trading business with creating the favorable situation of sound currency values, strong economic policies of the government and also strong positive sign of GDP rate, World Trade Organization was formed. But in the current situation, the economic barriers and the decreasing trend of currency value, trade war between the countries has provided some imbalance of the prudent working conditions of international trade. Such situation effected the US economy to the considerable effect. In order to solve such issues in international trade the then president Donald Trump intervened on the activities of international trade for the following mentioned reasons which was explained briefly.

Negative aspects of comparative advantage between China and US has made US economy to forego its high level of sound economic rate with more effect. It is because of the more volume of products manufactured by the skilled laborers especially to say Hardware products and other electronic products. Using this advantage the nation of china increased the tariff rate its export goods to US. And also using the option of comparative advantage, main countries of European countries also increased the tariff rate for its exports products to US nation. Not only for hardware products, essential industrial products like steel and aluminium are in great demand for developing the infrastructure for the nation. As US nation needs such products to use it in the nation building activities, the imbalance of the supply and the demand for such products made other countries to increase the tariff rate for such products when they are exported to US nation. Above mentioned facts are the reasons for the effective activities of intervention on President Donald Trump on International Trade. Recently in order to cut short the overhead expenses for importing the products from the China nation, He added the policy of adding the more value in the tariff rate for the products manufactured in China. So China need to pay high taxes for its export as well as importing the goods to US nation.