The implementation of the protectionist measures of US President Donald Trump is a major challenge to the global economy and trade relations. While some see a “bitter treatment”, others question its effectiveness and potential consequences for international trade.
In an interview with CNN This Thursday (3), economist William Castro Alves, the chief strategy in Avenue, said protection is not a historical feature of the American economy. However, the current tariff proposal can be considered an attempt to increase the collection, thus reducing the country’s financial deficit.
The economist can do so New rates can be generated between 700 and 800 billion dollars in revenueEven given a possible decrease in trade. “The attempt to definitions is a way for you to increase the group,” Alves said, which highlights the importance of managing the financial health of the United States.
For the Avenue strategy, the United States government is working to reduce spending, including the demobilization of workers in the public sector. According to him, these procedures, along with the new definitions, are part of a broader strategy to balance public accounts.
Political and economic context
Alves performs the context of Trump’s decision in his political scenario, which indicates that part of the American voters seeks to “vibrate” The current situation.
“I think a little about the intention of a related part of the United States that elected Trump, is to obtain a vibration in everything,” he said.
Despite the possible negative impact on Trump’s popularity in the election year, Alves argues that these measures may have medium and long -term benefits.
“You can equate the issue of the tax deficit, you reduce the long -term interest rate in the very useful economy for investment.”
