U.S. President Trump today announced a 50% tax on copper materials for the copper, effective August 1. Economic scientists and industry experts pointed out that this policy may lead to rising prices of many commodities such as home appliances, elect...
U.S. President Trump today announced a 50% tax on copper materials for the copper, effective August 1. Economic scientists and industry experts pointed out that this policy may lead to rising prices of many commodities such as home appliances, electronic products, automobiles, etc., pushing up household energy costs and causing inflation, which is of no benefit in all aspects.
Donald Trump said today that he would impose a 50% tax on coppers sold to the United States, saying that this was a decision made after a national security assessment.
Columbia Broadcasting Corporation (CBS) reported and analyzed that this will produce a series of locking effects, and the first industries it has impeded include construction, semiconductors, electric vehicles, solar panels and other renewable energy parts. Analysts pointed out that if 50% tax is implemented for copper, for consumers, the prices of household appliances such as refrigerators and air refrigerators, and electric vehicles are likely to rise.
Veronique de Rugy, a professor of political economy at the Mercatus Center at George Mason University in the United States, said, "Coppers are a very important element in the development of semiconductors and electric vehicles. The announcement has led to a sharp rise in copper prices, which shows that this has really had a great impact." Dai Hujie believes that "the reason Trump chose copper is because it is a very important factor for many important industries."
Ryan Young, a senior economics scholar at the Competitive Enterprise Institute, said that copper is an important material for electric wires and pipe wires, and is also used as a heat-guiding element in heat dissipation and household appliances. High taxes on copper may cause inflation.Yang En pointed out that this tax is bad news from all aspects, "If business costs rise, they will marry consumers, so we will see home repairs and all copper-made things become more expensive."
Yang En supplementation, tax collection on copper may also increase the national network maintenance costs and further boost household energy costs, "this will have a negative impact on the power industry and all people using electricity."
Trump believes that tax responsibilities can provide reasons, increase domestic production of key raw materials, and help create manufacturing opportunities.
The United States highly relies on Chile and Canada to supply copper. According to Morgan Stanley's research, the import volume of copper in the United States last year met 53% of national copper demand.
Extended reading: Trump: 50% import tax is charged on copper, 8/1
