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#america #DonaldTrump #tarriffwar #Pakistan #economy
#america #DonaldTrump #tarriffwar #Pakistan #economy
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00:00Assalam-o-Alaikum, I am Mirza Sobhan Baig with Daily Pakistan.
00:02What is the logic behind the new tariff plan of US President Donald Trump?
00:07What are the possible effects?
00:09And what will be the global consequences of this?
00:12We will talk about this.
00:14Before going into the depths of the effects of tariffs,
00:17it is important to understand what tariffs are and how they work.
00:22And how do they affect global trade?
00:25Donald Trump's new tariff plan, which started in April 2025, has produced some surprising results.
00:31How do tariffs work from the impact of electronics prices to targeting uninhabited penguins?
00:39What is the logic behind Trump's method?
00:43Why are economists concerned?
00:46And how will it affect the economy of the US, Pakistan and China?
00:51And how will your pocket be affected?
00:56What is a tariff?
00:58In simple words, it is a tax imposed on the goods that come to the country.
01:04Suppose you buy a $100 TV from another country,
01:07a 10% tariff on it means that you will pay the government an additional $10.
01:13But what is the purpose behind this?
01:15The purpose is to make foreign goods expensive so that people stop going to local goods.
01:22And as a result, local employees and US employees should be protected.
01:27And trade losses should be reduced.
01:30Yes, Trump is in favor of this and the whole matter here becomes interesting.
01:34But Trump's tariffs are not ordinary taxes.
01:37He has imposed a 10% tariff on almost everything that comes to the US.
01:42And he has hit some countries very hard.
01:45Trump's harsh target was China, which imposed a 34% tariff.
01:49While 46% tariff has been imposed on Vietnam.
01:53How did they choose this number?
01:55They call it an answer.
01:57While it is directly related to US losses.
02:01Here the formula is that you take trade losses with a country,
02:05divide the negative revenue with the total revenue,
02:09and then reduce this percentage.
02:11That's it, that's your tariff.
02:1310% with at least 7%.
02:15For example, China had a loss of $95 billion with the US last year.
02:20While $440 billion with India is 67%.
02:24And if you list it, you get a figure of 34%.
02:28It's easy, right? But strange.
02:30So why is this formula strange?
02:32This is not an answer.
02:33Trump says that it is equivalent to the taxes imposed on us by other countries.
02:38While the European Union imposes a 2.7% tax on American goods.
02:43While they get 20% in return.
02:47Instead of competing with the tariff, it is more about punishing trade losses.
02:52Critics say that it is too much.
02:55Because trade losses are not just about the tariff, but they are associated with big things.
03:01Like saving liquor.
03:02In addition, American consumers pay taxes, not China.
03:06This means that for every family, $4900 can be more than $1500 annually.
03:11Now the strangest part.
03:13Penguin Islands is also included in the list.
03:1510% tariff was imposed on the unpopulated Australian area near the Intercontinental.
03:20No people, no income.
03:23Only penguin and sale.
03:25Why?
03:28Penguin Tariff 2025 shows how extraordinary and justified this policy is.
03:35According to this tariff, Pakistan has a 39% tariff.
03:40It is particularly worrying.
03:42Pakistan earns $5.2 billion annually.
03:47Basically, textile, leather, surgical and carpet are included.
03:51This revenue is about 16% of Pakistan's total exports.
03:55And it is already considered extremely important for a weak economy.
03:59Only in the textile industry, there are hundreds of thousands of Pakistani employees.
04:03With an increase of 39%.
04:05American retailers have the opportunity to exchange supplies in low-tariff countries.
04:10With this, it is possible to destroy Pakistan's textile industry.
04:15Interestingly, some voices in Pakistan are proposing an extraordinary solution.
04:20One-sided tariff on all American products.
04:24According to Trump's formula, this can reduce Pakistan's tariff rate by at least 10%.
04:32Because Trump's formula does not consider trade inequality.
04:40We argue that this practical step can make Pakistani textile more competitive than the 34% tariff.
04:50This extraordinary method can double American textile production.
04:55Open Pakistan's markets for American products completely.
04:59So that access to American markets can be better achieved.
05:03This method indicates a creative reaction against Trump's tariff scheme.
05:09Although the result of this will be that cheap American products will enter the local markets of Pakistan.
05:15We think that the increase in tariffs will give more compensation than a loss in any local market.
05:21For an economy that is already struggling with low local currency prices and other problems.
05:29It is necessary to find a way to reduce these tariffs.
05:32Because new tariffs can increase unemployment without any solution.
05:37And foreign currency revenues can be reduced by $ 1.5 billion annually.
05:43The Pakistani government has limited power to reduce these losses and problems in a short period of time.
05:50This makes it one of the more serious consequences of Trump's tariff formula.
05:55China is also very worried about this.
05:58With a 34% tariff, China's $ 440 billion revenue in the United States, such as technology and clothes, is affected.
06:05So China will probably take action against the United States on American goods.
06:11Soyabean or ship.
06:12China may reduce its investment in the United States for a long time in 2018.
06:17China may make its Made in China 2025 plan self-sufficient.
06:21Or it may be tired of selling more in Asia and Africa.
06:25Less self-sufficiency in the United States may lead to a weak economic relationship in the future.
06:33For a short time, more prices, groceries, car parts, everything can be exported to steel or manufacturing.
06:41But the retaliatory action can destroy the farmers.
06:44Soyabean prices fell by 75% in the last trade war.
06:48It has been in short supply for a long time.
06:51Supply chains may change.
06:52For example, from China to Thailand, this is an expensive and lazy action.
06:57The overall trade loss may not be shaken.
06:59And if the whole world is against the United States, then we can see a slow pace of global development.
07:06According to the IMF, by 2026, the global GDP growth rate may be reduced by 1% to 2%.
07:13This is a gamble.
07:14In this case, Trump's tariff bold action is shaking the trade.
07:19It is upsetting other countries.
07:21It is damaging weak economies like Pakistan.
07:24And it is even imposing taxes on the K-Penguins.
07:27Will it save American employees or only increase prices?
07:32What do you think?
07:33Do tell us in the comments.
07:35That's all for now.
07:37Stay tuned with Daily Pakistan for more interesting videos.