Dan Steinbock
Thanks to President Trump’s new round of international tariffs, global economy is now at the risk of unraveling. This is not just the result of plunging world trade and investment, but of soaring US military expenditures.
President Trump’s new round of reciprocal and universal tariffs will escalate trade tensions, lower investment, hit market pricing, distort trade flows, disrupt supply chains, and undermine consumer, business and investor confidence. It will certainly penalize global economic prospects.
As fears of a recession mount and mass protests in the US have begun, the loss of over $6 trillion on Wall Street in only two days is just a prelude of what’s to come. Along with China, the large trading economies in Europe, Japan and South Korea, India and Brazil and the rest of the world are positioned to counter the Trump tariffs.
Days before Trump’s new tariffs, China declared its trade minister had agreed with Japan and South Korea, Washington’s two treaty allies in Asia, on a common response to Trump’s actions. In Seoul and Tokyo, the statement was seen as overstated. Nonetheless, after the impeachment of former President Yoon Suk Yeol, the divided South Korea must cope with trade war amid a constitutional crisis, whereas Japan’s PM Shigeru Ishiba has declared it a “national crisis.” In South and Southeast Asia, Latin America and sub-Saharan Africa, developing economies coping with natural disasters and external destabilization efforts are targeted by Trump tariffs as well.
No comments:
Post a Comment