Trump ushers in new era of US protectionism

Donald Trump has long declared himself a “customs man” willing to impose tariffs hanging on imports from countries injured in the United States.

However, on Saturday, the 783-year-old US president took the first dramatic step in his second term to transform that outlook into reality-the trade war and economic nationalism were at the top of his agenda.

From his Mar-A-Lago Estate in Florida, Trump released new tariffs on imports from Canada, Mexico and China, one day after threatening the EU with high levels.

Trump is gambling that he can press our trading partners, not to trigger an more harmful acceleration of inflation to adhere to Washington’s desire, at a time when the cost of living is the top concern of many Americans.

For the world, the inaugural gambit in the Trump business means that many countries will be forced to discuss everything about the new desire for immigration and even the American regional expansion, from trade deficit and currency policy. Financial markets can be shaken and may suffer from the global economy.

Professor of Colonel University Eswar Prasad said, “These tariffs have made a new era of trade security that will affect all American trading partners, whether rivals or allies, and will significantly disrupt international trade,” said Eswar Prasad, professor at Colonel University.

Economists say that if Trump retains 20 percent tariffs, both of them will be the most powerful economy of Mexico and Canada, giving their heavy dependence on the US economy, in the direction of the US economy. This loss will become more complicated that less than six years ago, these countries have signed a new trade agreement with Trump, hoping that it will stabilize relations with the United States.

Former US Treasury Officer Brad Seter said, “There is no safe shelter,” said a former US Treasury Officer on Foreign Relations. “Two countries, who were hit by Donald Trump in his first largest trade agreement, were the first two to hit the tariff.”

Neil Shearing, the chief economist of the Capital Economics group, said that the macro -economic impacts will depend on how wide the US customs package was and how fast it was imposed.

Economists say that some influences are appreciated by the dollar and the replacement of US products natively produced US products, on the other hand, corporations can choose to exploit some expenditure through low profit margins, economists say. However, the level of Trump’s first move – if fully applied – the last time the office appeared much more than the limited trade war against China and G7 allies.

“It could be a trade war against steroids,” said Ryan Suite, chief US economist at Oxford Economics. “The first round was even more targeted. Now they seem to be going across the board – and faster than my expectation, ”he added.

Former Economic Advisor to Square Paton Bogs Everett Eisenstat says: “I expect the tariffs to enter into a more measuring manner. But we can say there is a direction here, and it seems to be growing even more. “

The risk is that we see some real pain for the domestic sector by the end of this year, especially if he extends tariffs in Europe.

The first tariff in Mexico, Canada and China can only start. Trump officials are considering imposing public tariffs on all imports and added to the tariffs he imposed on Saturday.

Trump now wants to use tariffs to make money to increase trillion dollars tax cuts, which can only be carefully achieved through calibrated, but thick tariffs that can be tough to reverse.

“When the revenue comes up, if the tariff is very low, it will not raise enough money, if it is too high, it will stop trade and then you will not make any money. Bill Rains, the center of strategic and international studies, says they need to be found on the sweet spot. ”

As Trump doubled the tariff, he faced very little resistance from business groups and free-market Republicans, who had jumped into his population policy and tried to apply him. The last step was encouraged by Jim Rich, Idaho Senator who presided over the Senate Foreign Relations Committee.

“President Trump was always very clear that he would not tolerate it if he saw the Americans taking advantage,” he said. He also added to Canada, Mexico and China: “These governments know very well that they need to prevent the flow of drugs and illegal immigrants in our country. The sooner they do it, the better. “

However, there are two major dangers for Trump. A sale will be closed that the value of the equity market and Americans to retire is to sink. The other is that in the last two -and -a -half years, the inflation comes up again after 2 percent of its target is slow.

Shearing says Trump’s proposed measures can now press PCE inflation above 5 percent compared to 2.6 percent. He warned that big tariffs on the EU and China would put more pressure on our price increase.

“This is a big hit, especially for Trump, for the working families, including the people who voted for Trump,” the US chief international economist on ING.

“The risk is that we see some true pain for the domestic sector by the end of this year, especially if he extends tariffs in Europe.”

The Democrats, who were looking for a way to attack Trump in his second term, are already turning to the possibilities of high inflation.

On Friday, Oregon Senator Ron Wider said, “Working American families are about to pay more for the things they need to do with huge tariffs on gas, grocery, phones, TVs and cars.”

“These tariffs just mean as a class war, forcing ordinary Americans to run the bill for Trump and its wealthy friends for one more tax break.”

Trump has discovered that inflation is subjected to in its first term during the trade war.

However, Federal Reserve Chairman Jay Powell mentioned last week that the situation changed structurally before the epidemic. “You’re coming through a situation where we don’t come back to 2 percent and it’s simply different,” he said.

For the global economy, a potentially shameless scene is “huge supply shock”, Nightly says that the shock economy is similar to the Shock Economy during the Covid -19 epidemic.

“The risk is going to be quite harmful, especially if we see a significant response. And I can’t see how politicians do not respond. ”