Everyone will lose from the commercial war caused by Donald Trump, but the United States will be the first to suffer, he warned François Villeroy de Galhau, the governor of the Central Bank of France, the bank of France. In his annual letter to the president of France, presented on Wednesday, April 9, he asked the Government to better control public spending.
Is the trade produced by Trump the end of globalization?
In any case, we experience a historical change. International order and alliances are being interrupted, mutually beneficial trade and global growth are threatened, and all this increases economic uncertainty everywhere. These protectionist measures also mean the abandonment of American leadership and, without a doubt, a return to economic isolationism. It is an unprecedented value destruction by a democratically chosen leader. The global economy will suffer for it, everyone will lose, but first of all the United States.
Because?
All analyzes converge: These tariffs will increase the cost of imported goods to the US, thus restart inflation, and reduce growth there, in approximately one point of GDP, according to an average of economists’ predictions. The New York Stock Exchange has already decreased significantly. It is not clear if this will cause a recession in the United States, but the mere fact that some mention the possibility was unimagered three months ago. It is strange to see a United States government to get a goal in such a way.
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