Tariffs to make us poorer

Aranzel is synonymous with inflation. A tariff is simply a tax on the importation of products that must be paid to the Tax Agency. Of course, this tariff is added to the price of the product and, therefore, will end up being paid by the consumer, not the company, in most cases.

The tariff is used as an excuse to improve local competitiveness and the economic progress of the region itself. Let's consider an example. Producing wine in Spain costs €5 a bottle. Producing it in the US costs €8. If we impose a 200% tariff on European products, a bottle will cost €15. Either way, the consumer loses: instead of a price of €5, the cheapest one now costs €8. This creates a dilemma: does opting for local production compensate the consumer for the loss of purchasing power? And we must also take into account the effect of the currency exchange rate: in just nine days, the euro has gained 5 cents against the dollar.

What if Europe responds with more tariffs in return? The prices of products we import from the US will also rise, reducing consumption, and American companies will therefore have to lay off workers. While large companies will tighten margins and survive, both local SMEs and foreign ones dependent on international trade will be the most affected, as they have less room to maneuver. As can be seen, the impact of tariffs on the economy in general is uncertain, and their implementation is driven solely by political considerations without any real economic rationale.

In short, this trade war will only lead to higher inflation and a loss of consumer purchasing power, both for the US and for us. If free trade has worked so well for so many years, there was no need to change it.