Trump and Tariffs

 
 
 

Vocabulary

ally	dispute	agreement
pair	promise	put simply
risk	aggressive	pass on (2)
steel	bourbon	fluctuation
import	impose	on the horizon (2)
local	commit	aluminum
hope	concern	implement
doubt	deal (2)	effectiveness
boost	barb (2)	back away
deficit	dispute	assemble (2)
ravage	intensity	encourage
threat	goods (2)	assault (2)
illegal	lead up to	trade barbs
justify	catch (2)	sweep under the rug
rug	reiterate	differences (2)
fair (2)	object (3)	drop a bombshell (2)
export	casualty	resolution
tariff	retaliate	over and over again
harm	potential	summit (2)
cut (2)	negotiate	take for a ride (2)
border	escalation	get used to
abroad

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Video

 

 
 
 
 

Transcript

The trade dispute between the US and its allies is intensifying. And tariffs from the EU could make all kinds of American goods more expensive in Europe.

You could see a higher price on a bottle of bourbon, a new pair of blue jeans, or even a Harley Davidson motorcycle.

And in the US, manufacturers of goods that use aluminum and steel like cars, will have to pay more to import — a cost that’s likely to get passed on to consumers.

Meanwhile, the steel and aluminum industry on both sides of the Atlantic faces uncertain times ahead, risking fluctuations in the market, and possible job losses.

All of this is because of tariffs.

But hang on one second . . .

What exactly are tariffs?

Put simply, they’re a tax on anything imported from abroad.

Governments use them to protect and boost local industries. And the thought is that they encourage consumers to buy local instead of importing, and that they hope will protect jobs and the economy in the countries that implement them.

But here’s the catch: many economists doubt their effectiveness, and tariffs often come with political risks.

Donald Trump, US President: “We will never, ever sign bad trade deal! America first!

Chrystai Freeland, Canadian Foreign Minister: “What I object to very strongly is the illegal and unjustified imposition of tariffs on Canadian steel and aluminum.

The US president has voiced concern over trade agreements in the past. He’s concerned that the US is importing more than it’s exporting, leading to a US trade deficit.

Donald Trump, US President: “The American steel and aluminum industry has been ravaged by aggressive foreign trade practices. It’s really an assault on our country.”

The US has imposed tariffs of 25% on steel and 10% on aluminum from places like the EU, Canada and Mexico. And they’ve also threated tariffs on other goods as well.

The tariffs saw world leaders trading barbs for days leading up to the recent G7 summit.

But once they were all assembled, they seemed to be able to sweep all their differences under the rug.

Donald Trump, US President: “Our relationship is very good. We are actually working on cutting tariffs and making it all very fair for both countries.”

But then Trump dropped a bombshell, backing away from a statement that committed the group to finding a resolution to the trade dispute.

So now we’re looking at the threat of a trade war, where countries set tariffs against one another over and over again. Canada for one, has already promised retaliatory tariffs.

Justin Trudeau, Canadian Prime Minister: “I reiterated to President Trump that these tariffs threatened to harm industry and workers on both sides of our border.”

And the EU is planning its own tariffs on American goods.

Angela Merkel, German Chancellor: “We’re not going to just let ourselves be taken for a ride again, but we’re going to negotiate too.”

Liam Fox, UK Trade Minister: “There are no winners in a trade war; only casualties.”

While most countries want free trade with their partners, until a mutual de-escalation can be agreed, we’d better get used to more talk on tariffs and a potential trade war on the horizon.

 

 

Questions

1. Donald Trump was only bluffing about imposing tariffs. True or false?

2. Will products increase in price, decrease, or remain the same?

3. Are business and economic outlooks predictable or uncertain?

4. What are tariffs and what are their purposes?

5. Everyone agrees that tariffs are effective. Is this correct or incorrect?

6. Does US President Trump believe US business and employment will go from great to fantastic?

7. Were G-7 leaders arguing and fighting during the summit?

8. World leaders agree with Trump. Is this right or wrong?

9. Did Trump initially implement broad sweeping tariffs all at once? What happened as a result?

10. Is the report objective and neutral; or is it biased and subjective?

 

A. What do people in your country think about Trump’s tariffs?

B. Is there widespread agreement or disagreement regarding free trade versus protectionism?

C. Would your company or organization benefit from or be harmed by free trade?

D. What will happen in the future?

E. What should politicians and people do?