Will there be a global trade war? Donald Trump has shocked the world by doing exactly what he said he would do. Some fear he is single-handedly destroying the world economy. Others say he is simply playing a game of political chess.
Trump’s trillion dollar tariff gamble
Rolling the dice: Trump pulled back from a US trade war with Canada and Mexico yesterday at the last minute — but 10% tariffs on China kicked in today. Some predicted a global anti-American alliance was already forming. Glossary
Tariffs - A form of tax on imports.
Income tax - A tax you pay on the money you earn as an individual. It is a huge source of income for most governments.
Wall Street - A street in New York City's financial district. The term "Wall Street" is now used to discuss US financial markets as a whole.
Tax - Money workers pay to the government to pay for services like roads and hospitals.
Domestic - Related to the home. From the Latin "domus", meaning "house".
Zero-sum game - A situation in which when one person gains, another person will lose by an equal amount.
Profits - Amazon's sales rose by 38% in 2020 and its profits reached $21.3bn.
Trade war - When countries try to damage each other's trades. They can do this by placing tariffs (taxes) on goods or quota restrictions.
Smuggling - The illegal transportation of goods, especially into or out of a country.
Midterm elections - Every two years, Americans have a chance to vote and choose new politicians to make the country’s laws. These votes can take place in the middle of a president's four-year term.