On Wednesday, the Panco de Portugal governor (BDP) warned that the rates that the United States were working as a tax and that the revenge stage would lead to “intensifying economic costs.”
“In its formulation and in the current context, these measures are imposed, and they are like taxes that are barriers and have a very clear impact on the economy and this immediate impact, such as any price, a decrease in economic activity.”
The ruler pointed out that these rates are especially harmful because they “operate at all stages of production, not just focusing on final consumption”, as the international economy is integrated and “products are traded at different stages.”
“These rates are not particularly clear about the productive fabric,” he said, adding that “Europe and Portugal will undergo the results of all these definitions,” in the end it will depend a lot on how each country responds, but with the ruler to indicate that “Europe must interact with these definitions.”
He said that in this decision, it should be taken into account that “the revenge stage will make the costs of economic costs of definitions,” noting that it is expected that it will be expected to expect international trade and redirect trade from some countries. “
Consequently, the country will feel influential: “The least trade with the United States, but more trading with the rest of the world,” so “the amount of trade will be less, the impact on prices will be more non.”
As for the influence on inflation, “if the rate is a tax, the price will rise in this deal, but due to the presence of all alternative compensation mechanisms and accusations that have been established, it may even happen that this trade becomes more competitive and is competitive through the price and until the cheapest prices are now able to separate.”
After Donald Trump has announced in recent months, more than 25 % of customs rights in steel, aluminum, cars and auto parts, and the American leader must announce new prices on Wednesday, which may rise to 20 % of most imports in the so -called “Liberation Day”.
The US President wants to implement the similar prices of those that have been applied to the exported American products.
The White House (US Presidency) said on Tuesday that the new customs duties are expected to enter immediately.
