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On March 7, Donald Trump made two very important decisions. Was a Impose tariffs In Canada and Mexico, at the rate of 25 percent, as well as 10 percent of the last month’s 10 percent of Chinese imports. Ay 25 percent of the tariff It is expected to follow imports from the EU. Together, these four economies produce 615 percent of the import of US products. Another and more significant decision was to suspend US military assistance for Ukraine, to surrender and defeat to the country that appeared as a choice of hobson. Trump’s friend Vladimir Putin must be absolute: US President is tearing up in front of his happy eyes.
Only two sets of decisions in the cyclone as soon as Trump’s second president is. However, they are hugely important for the outside world. They represent the termination of generous, estimated and rules-based business relationships with the most powerful country in the world and create that system itself. They represent the basic alliances and promises of the United States of the United States in favor of close relationships with the enemy of the former. Trump clearly considers Russia more important than Europe.
In both cases he made a very wrong mistake. As Morris barrierFormer IMF chief economist noted that the US trade deficit is not due to fraud by business partners, but its expenditure is more than income: its huge federal financial deficit is the largest determinant of US trade deficit, Currently at about 6 percent of GDPThe Republican Plan to permanent to reduce the 2017 tax of Trump Guarantees that this deficit will be at least as long as the markets will fund. Given it, trying to stop trade deficit with tariffs is like trying to flat the balloon full.
To understand this requires some knowledge about the macroeconomic economy, which is completely lacking in Trump. However, this is not his only foolishness. Trump also says: “Let us tell the truth, the European Union was formed to screw the United States. That’s the purpose. And they did a good job of it. “More He says about Europe: “They don’t take our cars, they don’t take our farm products, they take almost nothing and we take everything from them.”
Both complaints are foolish. The EU was formed to bring about economic relations and political cooperation on a continent devastated in two horrific wars. The United States has long understood and actively promoted this intelligent reaction. But that was, alas, today’s self-compassion is different from the blonder.
Furthermore, as the Danish economist, Jasper Rangvid Notes on his blog, Trump is simply looking at bilateral trade in products, ignoring trade and capital and labor earnings on services. This happens in such a way that at least the eurozone and capital returns and labor wages from the export of its services have been exported there that have offsets its bilateral deficiencies in products. The balance of the bilateral account of the overall Eurozone bilateral account with the United States is close to zero, even is not important. However, bilateral balances are less important than the overall bilateral balance. Given how he makes his money, Trump is running a big deficit on life products throughout life. It rarely seems to have done a lot of harm to him. (See chart.)
For Mexico and Canada, the economic costs of these tariffs will be high, since the export of their products to the United States in 2021 was 2 27 percent and GDP 20 percent respectively. In the United States, EU exports were only 2.5 percent of its GDP. So, the impact of 25 percent tariff will not be great. Yet it is still unreasonable, actually illiterate, an act of economic war. The EU has to take revenge. Translatantic relationships will permanently damaged.
Even the trade war, though it is Pels compared to the Voldimire Zelnsky attack on the Oval Office The suspension of military assistance to Ukraine last Friday and later by the US President and Vice-President. The purpose may be forced to sign Zelnsky to sign a mineral agreement. The bigger problem, however, is that Zelnsky disbelieves Putin as a music cause and now there is no basis to trust Trump. Also Trump may ask for a “peace agreement”, but if Ukraine is her for her acceptance, why would Putin really agree with?
Both men are underestimating the will of Ukrainians to become a free human being. But if that goal is to be achieved, Europe has to understand both its own defense protection and Ukraine both. Germany’s next Chancellor Fredrich Merz is right when he said that his “perfect priority is to strengthen Europe as soon as possible so that we can truly gain freedom from the United States.” These steps should also be taken quickly. More than a hall will accelerate the transfer of 200 billion to seize Russian reserves to UkraineThe Another will now be a huge defense build-up that US promise to NATO has broken.
The EU Plus UK has 3.6 times in Russia and a GDP, purchasing power, 4.7 times larger than the combined population. The problem is not the lack of human or economic resources only: If (if a big) Europe can effectively cooperate, it can maintain Russia’s balance in the long run. However, the disadvantage runs medium, since then Europe is unable to create some important military equipmentOn which it depends on and Ukraine. If Europeans buy them, will America refuse to supply this national weapon? This national rejection provided will be the moment of truth.
Trump is conducting economic and political war on US allies and dependents. However, as a result of the confidence of countries used to share its values, the fall will also be very expensive in the United States.
