Donald Trump launched the largest recent economic experience, as it launched a planetary trade war. Fuse was the application of the destroyed customs tariffs to vehicle imports in the United States, followed by revenge measures announced by countries in Asia and Europe.
The market’s reaction was badly with the Trump initiative, as it recorded severe losses – especially for auto manufacturers in both the United States and abroad. Unlike the declared goal of the former president, the expectations that led to these losses indicate the expectations of reducing industrial production in the United States. In addition, the valuable measures and the competitiveness of Chinese electric car companies have strengthened, specifically against American competitors.
In terms of macroeconomics, analysts in the United States, European and Japan agree to predict the low growth of global GDP, due to the insecurity that will lead many companies to postpone investment decisions. Trump’s experience has threatened with unified productive chains for decades, as well as undermining relations with allied countries so far.
Despite the risks, Trump plans to increase the bet next week, with a new tariff. Your experience causes terror for those who know the story – which is, of course, not your case. It was the last time that the United States has begun in a protective endeavor of this size in the thirties of the last century, and the result was an unprecedented economic catastrophe, followed by World War II.
Historical parallel is a warning: aggressive business and isolation policies can have severe consequences, not only for the economy, but for global stability.
