Global Trade War Incoming? | Economics of Import Tariffs скачать в хорошем качестве

Global Trade War Incoming? | Economics of Import Tariffs

🚨 Is the world on the brink of another global trade war? In a dramatic return to protectionist policy, the US has proposed the biggest shake-up in trade policy for over a century. New tariffs signal a potential new global trade war, with wide-ranging implications for global supply chains, US consumers, and macroeconomic stability In this video, Geoff breaks down: ✅ The 2025 tariff overhaul — with some countries facing rates as high as 54% ✅ The economic theory behind who really pays tariffs ✅ The effects on consumer surplus, inflation, and welfare loss ✅ Key microeconomics diagrams and real-world examples like Nike’s supply chain ✅ The concept of price elasticity of demand and how it matters for trade deficits We’ll show you how to bring killer diagrams and top-grade analysis into your answers — whether you’re sitting A-Level, IB, GCSE, or any UK or international economics exam. This is your go-to video to get clued up on one of the most topical issues in international economics. 🔔 Support Your Exam Success: 👍 Like this video 📲 Subscribe to tutor2u for more expert insights 🔔 Tap the notification bell so you never miss a chance to boost your grade! 🎯 Perfect for: AQA, Edexcel, OCR, CIE, WJEC/Eduqas Economics students IB Economics (Standard & Higher Level) Economics teachers looking for case study gold! 🔖 Hashtags: #exams2025 #examsuccess #economics 📈 What’s in the Tariff Plan? A 25% flat tariff on all foreign-made automobiles 10% import tariffs on goods from a broad group of countries, including the UK, Brazil, and Australia Much higher tariffs on countries with large trade surpluses with the US: China: 54% Vietnam: 46% Cambodia: 49% EU: 20% Canada & Mexico: 25% (already in place) 🎯 Main Objectives of the Policy: Eliminate the US trade deficit (or get “back to zero”) Raise billions in tax revenue to fund domestic tax cuts Boost domestic employment by re-shoring manufacturing However, achieving all three goals at once is economically unrealistic, especially given the potential for retaliatory trade measures and shifts in global demand. 💸 Who Pays for the Tariffs? Tariffs are paid by importers in the US — not foreign exporters. Ultimately, this leads to: Higher prices for consumers (reduced purchasing power) Potential cost-sharing between US importers and foreign suppliers Increased inflationary pressure, especially on price-inelastic goods 📉 Impact on Consumer Welfare: The presentation includes clear supply and demand diagrams illustrating: Decrease in consumer surplus Deadweight welfare loss Fall in import volumes Government tariff revenue (area = tariff × quantity of imports) 🔥 Will Inflation Rise in the US? Yes, especially in the short term: Cost-push inflation from higher import and input costs Possible wage-price spiral as workers respond to rising prices Disruptions in efficiency if firms have to shift supply chains 🌍 Global Supply Chain Disruption: Major brands like Nike and Adidas, heavily reliant on countries like Vietnam, face a dilemma: Absorb higher costs Raise prices Or reconfigure production to lower-tariff nations This policy may accelerate regionalisation of supply chains and force firms to adapt quickly. 📚 Key Concepts for Economics Students: Tariffs as a trade barrier Protectionism vs. Free Trade Price Elasticity of Demand (PED) Consumer & Producer Surplus Deadweight Loss Cost-Push Inflation Wage-Price Spiral Trade Deficits & Surpluses Globalisation & Supply Chain Economics 🧠 Why This Matters for Exams: This is a case study goldmine for: AQA, Edexcel, OCR, Eduqas, IB & CIE Economics Micro and macro essays Diagrams, data interpretation, and evaluation Real-world examples to spice up analysis! Stay tuned for more tutor2u updates — and don’t forget to use this case to strengthen your exam application skills. 🚀