Trump Tariffs: A simple illustrated guide for 15 economic conditions for knowledge News Donald Trump

Through the last few weeks, the President of the United States Donald Trump announced a number of tariff policies, with movable statements that led to growing concerns due to global economic instability.

With Trump tariffs that affect almost every country, many concepts are thrown around to describe potential results.

From the trade wars to the stock market drop, this article explains, in simple concepts with illustrations, which are these key terms, including those that can become more important in the coming months.

1. Tarifa

Tariffs are simply taxes on the border in one country on the goods of the country. They usually aim to protect local jobs from a foreign competition.

• Reciprocal tariffs They came to define Trump’s trading policy of imposing the same tariffs in other countries that include American goods. It’s like excuse: “If you charge for us, we’ll charge you the same.”
• Retalian-tariffs Whether taxes have imposed states on imported goods from a foreign country that will increase by the imposition of similar taxes on that country. It’s like excuse: “If you make it difficult for us, we’ll do the same to you.”

2. Trade war

The trade war appears when, for example, two countries of disputing trade practice and one country sets additional tariffs on the goods from others to believe that it deals with unjust trade practices. The second country is resting with the tariffs and this Tit-for-Tat continues, so escalates in the trade war.

It is like an economic tractor where both sides keep pulling harder instead of finding a way to arrange.

A good example is the American trade war, which is in force since 2018. when the USA was first set up tariffs on Chinese goods. Recently, tit-for-tat between Washington and Beijing saw the tariffs on China growth to 145 percent.

3. Trade deficit and excess

The trade deficit arises when the country buys (imports) more goods than sold (export), which means that the demand for foreign goods is higher than delivery of their own products.

For example, the USA has a trade deficit with China because it buys more goods from China, such as electronics and clothing, than selling it.

A Shop surplus is the opposite. This happens when the country sells more goods than they buy.

For example, now has a trade surplus with the Netherlands, because it sells more goods, such as machines and agricultural products, in the Netherlands than buy it.

4 subsidies

Subsidies are financial support or money that the government provides assistance to local businesses or industries, making their products cheaper or more competitive.

For example, after Trump Tariffs by 25 percent on all foreign cars and auto parts, South Korea announced urgent support for its auto sector by increasing subsidies for electricity to strengthen the need.

5. stock market market

The market market is a place where the shares of companies and other financial instruments are purchased and selling. For example, if you buy Amazon actions, you own a part of the company, and the stock value can go up or down, which means you can do or lose money.

The index is a way to measure the ways of the shares of shares.

In the US, three of the largest indices are:

• S & P 500 Follow the 500 largest companies in the USA.
• Nasdaq composite It mainly monitors technological supplies such as Amazon and Google.
• Dow Jones Industrial Prosec Follow 30 large American companies such as Coca-Cola and Walmart.

6. Fed

Fed (short for federal reserves) is the central bank of the United States.

It helps control money in the country, sets interest rates and tries to keep the economy stable – more about them later.

7. Interest rates

Interest rates are the cost of borrowing money, usually expressed as a percentage.

For example, when the FED raises interest rates, money borrowing becomes more expensive, and when reducing rates, borrowing money becomes cheaper.

Interest rates increase when central banks want to slow down inflation or cool on the overheating economy.

8. inflation

Inflation measures how fast the cost of things rises over time. This means that the money does not buy as much as it used to be used.

For example, if a sandwich costs $ 2.50 a year ago, and now the same sandwich costs $ 3.00, then the inflation rate is 20 percent.

Inflation can occur when the demand for the product is higher than the offer or when it costs more to make the product. It can also occur if there is too much money in the economy, as when the country is printed more cash.

Fed tries to keep inflation stable. If prices are raising too fast, it can harm the economy by making goods and services overpriced. Fed modifies interest rates to allow prices to be under control.

9. course

The course is the value of a country’s money compared to someone else’s.

For example, one US dollar will get you about 0.90 euros.

Course rates are important because they affect the costs of purchasing and selling goods between countries.

The strong currency makes imports cheaper and export more expensive, while the weak currency exports export cheaper and imports more expensive. Prices also affect travel, investments and global work.

10 market trends

The market trends are a general direction in which the prices or markets are moving over time – goes up, down or remain stable.

They help investors and businesses understand what is happening in the economy.

Economists use concepts such as the “bull” market and “bear” to relate to these trends.

• Bucket market – When the economy is doing well, prices increase and people feel confident. You mean a bull that pushes with your horns (rates growing)
• Bear market – When the economy is badly done, a drop in prices and people feel cautious. Imagine the bear covered with your paws (prices fall).

Economists often use the Formula based on S & P 500 to determine whether we are on the bullet market or bear, the high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high high.

11. debt

The debt is money that the government owes another, usually with the agreement to pay him later with interest.

For example, if US money needs us for things like health care or defense, it could be borrowed from China by selling American government bonds.

Bond is like a loan in which you borrow money in exchange for interest and repayment later.

China buys these connections, borrowing money to the US, which promises to return to him with the passage of time. This allows us to get the money quickly without gathering taxes or reduce consumption.

From March 2025. The American national debt amounted to about $ 36.56 trillion. This significant level of debt has launched concern about the fiscal health of the nation and its ability to manage future financial obligations.

12. Trade agreements

Trade agreements are a contract between countries that facilitate the purchase and sale of goods.

For example:

• Free Trade Agreement (FTA) Is the agreement between two or more countries to remove trade barriers, such as tariffs, to facilitate goods and services to move between them.
• Bilateral Trade Agreement is a wider contract between two countries involving rules to help them trade easier.

13. Gross domestic product (GDP)

GDP is the total value of all goods and services manufactured within the country in a certain period, usually a year or quarter. Used to measure the size and health of the Earth’s economy.

14. Recession

The recession is when the economy becomes weaker over a period of time.

The recession is usually identified when GDP countries fall for two consecutive quarters (six months).

During the recession, a few things usually happen:

• People lose jobs
• People are spending less
• Falling out the stock exchange.

Since 1950. years now they had 11 Recession.

15 types of trade policies

Trade policies relate to government policies that govern the exchange of goods and services between countries.

Widely speaking, there are two opposite views on how countries should include in global trade.

• Protectionism – focuses on limiting trade and protection of local industries. Some adoption tools are tariffs, subsidies and import quotas – setting up limits as product can be introduced.
• Free trade – Promotes openness by releasing countries that are easily traded by goods and services. Free trade generally is better for global economic growth, lower prices for consumers and access to the wider variety of goods and services.