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Donald Trump’s television image has risen to the representatives of Donald Trump’s television at a conference hall of Davos on Thursday.
The Prime Minister, the business leader and the President of the European Central Bank were aligned to address him at the World Economic Forum, his first speech to visitors worldwide after returning to the White House. A participant joke about bringing some popcorn for the event.
Trump did not back down, causing nervous laughter because he similarly issued multiple claims and ultimatum to allies and rivals.
Saudi Arabia and other producers must reduce oil prices, global central banks “should” reduce interest rates immediately and foreign companies must increase investment in US factories or face tariffs. The EU – which came for special condemnation – must stop hitting big American technology companies with competitive fines.
“We are going to claim respect from other nations,” the President said. His predecessor “allowed other countries to take advantage of the United States. We couldn’t let it happen anymore.”
Trump’s demands came in the first week of office in the office where the President launched a blitzkrig on the executive order and announcements that emphasized not only to give the state a new size but also to America’s economic and commercial domination. Customs up to 25 percent may be imposed in Canada and Mexico early February 1, Trump itself could run the rofsode on its first term of trade agreements.
China may face up to 100 percent tariff if Beijing fails to agree to the selling agreement to sell at least 50 percent of the tiktok app to a US company, when asked to buy more American oils if the EU wants to avoid tariffs. . Emphasizing on the US new one -sided, Trump has withdrawn the United States from the World Health Organization, as well as the Paris Climate Agreement for the second time.
Surprisingly, Trump reached for a vague, 90 -year -old provision in the US tax code To double the tax rate for foreign nationals And if companies are believed to have imposed “discriminatory” taxes on American multinationals.
Nils Johannesen, director of the Oxford University Center for Business Taxation, says the proposal has fired a “hand grenade” in international tax policy making. This step suggests “to transform the tax principles of other countries through forcibly without cooperation,” he added.
The planned planned by the new president this week increased the multi-front economic war because Trump is using the American re-economy power to restore the international system.
The main question, investors and policymakers say, is this a more intense version of the transaction, the delemeting system seen in Trump’s first term, or a change towards uninterrupted one -sided, where the White House is not limited to the limitations of international law. Fear foreign governments and businessmen.
“He is giving weapons to everything: trade, tax and power. I am concerned that finance will also be given weapons, “said the head of the world’s largest sovereign asset fund. “Most people are betting that he is careful about the stock market – that’s the only check. It is and the truth is that he says that he wants to be peacekeeping. “
Davos, leading US executive Trump was eager to cheer the agenda – suggests that there is little concern in the corporate sector about the breakdown of potential global rules -based orders in the United States.
Tariff is a “economic tool. This is,” JM Morgan Chase CEO Jamie Dimon said in a CNBC interview in Davos this week. “If this is a little inflation, it is good for national security, so be it.”
Investors are likely to relax the regulations of banks and high-tech agencies, as well as digesting a massive declaration to the US stock market this week Artificial intelligence of $ 100 billion infrastructure Has been launched by OpenAI and Softbank. S&P 500 index increased by 1.8 percent by the end of the week (until Friday afternoon in New York).
Mahmud chief of the Global Macro of the Amundi Investment Institute said, “Imagistly, people talk to CEOs and say that they are all feeling very positive.”
“If I ask myself what justifies the animal to the soul, the banking development stuff is real and the possibility of low corporate taxes is real.”
Nevertheless, outside the United States, the threat of trade barriers on tax policies and the threat of a broad format of conflict is weighing on economic views. European Union Economy Commissioner Valdis Domboveskis says the breakdown of world trade will cause special concerns for the economy like Europe, where more than one fifth of the trade GDP.
He has quoted imf estimates that sees the extreme geo-economic fragmenttion Commerce can erase 7 percent of global GDP in a medium term. “If this global economic division is permanent – and it has a risk – it is going to be a significant negative economic consequence.”
Even when brassing for a tariff attack, some European policymakers demanded to see the potential rise and fall.
Belgium Prime Minister Alexander D Croo says, “This is a new environment that is definitely less comfortable for Europe, but it also gives many opportunities.” “Europe may show there that we have stability and you are in an estimated environment where the investment can be invested.”
European officials also say that they can benefit from deep trade relations with other countries that can be scattered from the US market. “Countries are coming to us because they want to be multi -faceted from the United States,” said a senior EU senior official.
“We should be open but not stupid,” said Spanish Economy Minister Carlos Queerpo. ” “Our companies need to create an equal play field with equal terms, equal terms and respect for others. The same happened in China. This needs to be the case with the United States. “
Although the United States and Europe have long protested against Chinese trade practices, Beijing was quick to present itself as a supporter of worldwide, rules-based order instead of its nemesis.
The day after Trump’s inauguration, the Chinese Vice-Primier Ding Juekiang emphasized that economic globalization “You lose, I win, zero-equipment.” Praising international organizations, including the World Trade Organization and the United Nations, he said the world’s largest countries needed “leading”.
China presents itself as a Paragon of a free trade while Trump wants to get a discount from its close allies through cruel economic forces, not lost in the presence of Ding’s performance.
In spite of the arrangement And the statements made by the White House this week, most global policymakers are waiting for Trump’s aggressive transactions to decide on long -term impacts and are taking the procedure to visit. Global economic System
“Why put my card on the table before that?” Senior EU official said.
UK business secretary Jonathan Renolds acknowledges that there are “lots of questions” about the president’s method. “Is this about leverage around the discussion? Is it about the tariff about the increase in revenue?” He says the UK will argue for a “much more open, global trade economy”.
However, there are very few questions that Trump indicates significant growth on how he runs trade as a weapon compared to his first term.
“In the vicinity of Trump, who has got the time to create a systematic, systematic aspect for the protected trade policy, and it shows,” Ally Renison, a former UK trade department official, says the consultant is now a consultant to Co Newgate. He said it would be used to create a case file of “proof” against countries and then to get a discount on both economic and foreign policy.
The question goes on how far Trump is willing to go. Jeromein Jaitelmeyer, head of Broogel Think-Tank, says the danger of trapping the rules-based order, the complete breakdown of diplomatic and legal channels for settlement of international disputes.
If Trump comes out of the wide international structure like the WTO or IMF, he warns, then the measures that help to manage the global economy can be “destruction”.
Extreme phenomenon, he added, “They really puppet” – namely violates the sanctity of the international border. Greenland or Panama to control the canal through force, as Trump threatened, would be “re -introduction of the law of the jungle”.
Michael Stain, director of the Economic Policy Studies at the American Enterprise Institute Institute, Michael Studies, has questioned Trump “Basic forces” that will drive global economic consolidation – and whether the President even wants to do so. But regardless of, he says, uncertainty about his true purpose “makes it difficult to plan for business, creating a cooling effect on investment and creating excitement with our allies.”
Some warnings against the surprise of his capitalism without Trump’s threat or limit, because his agenda was so inconsistent.
“What we see is the huge dose of American Hubris,” said Arancha Gonzalez, Dean of the Paris School of International Affairs in Sciences Po. “We are blinded by the intensity of all the issues kept on the table and the conviction of Trump. But we are not looking at the conflict. Looks like we’re all in orange medicine. “
Additional Report of Peter Foster in Davos Harriet Agnew and London
Data Visualization by by Keith Fry
