There is a lot of global uncertainty currently. The tariffs imposed by the U.S government are putting strains on growing economies and forcing them to act in historic methods of trading.
What are Trumps Tariffs?
Most of the World’s trade relies heavily on the American Dollar as the global currency. This means that the U.S government has the power to inflict and control the way in which trade is carried out under their currency.
For many this means tariffs on particular products, all of the proceedings of which help strengthen the American dollar and weaken the countries that are targeted.
The top countries that are affected by the tariffs are China, India, South Korea and Thailand – each with over 5 investigations of US tariffs.
Due to this, countries are seeking other methods of trade in order to avoid the consequences of trading with the US dollar and with China almost at 40 investigations.
What is Bartering?
Bartering is a Stone Age method of exchanging goods and services between two parties. During it’s origins, people would trade livestock and certain foods for other foods or goods in order for both parties to benefit from each other.
In a modern world things work on a similar level, except quantities are much larger and there is much more range of what can be traded.
For example, a company may trade their services of building websites in return for useful training from another company. In this agreement services are exchanged but no money Is exchanged between the parties.
How are countries using bartering to avoid trumps tariffs?
To avoid Trumps Tariffs, countries are trading their produce without the use of currency. This means that they can escape having to pay the high fees set by the U.S government and continue to trade in a stable and efficient way.
This helps the economies of these country continue to thrive and not be affected by the rules which are put in place to weaken them.
To avoid Trumps Tariffs, countries are trading their produce without the use of currency. This means that they can escape having to pay the high fees set by the U.S government and continue to trade in a stable and efficient way.
This helps the economies of these country continue to thrive and not be affected by the rules which are put in place to weaken them.
This technique may increase in popularity as more tariffs are introduced, or the countries may choose to trade in a completely different currency altogether.
By banishing the U.S Dollar from the trade deals, countries can trade fairly and continue to grow their economies without being impacted by extreme trade costs imposed by tariffs.