What happens when the world’s biggest economy declares a tariff war?

7 comments

1. For those with at least a PhD in Economics,

   What is the probability Trump is right and the US greatly benefits from this within 8 years, assuming his successor wins the office and retains his economic policies.

2. What actually happens is that in the short term countries around the world have slowed economic growth or recession. In the long term, assuming this doesn’t cause a global depression, the result will be that countries will adapt, find new partners and markets, and the USA will increasingly become irrelevant to the wider world.

3. Other countries retaliate, and everyone loses. The last time someone tried this was just before the Great Depression.

4. To start, every economy will get a bit smaller. In the aftermath, some economies will be able to use the change to improve their position relatively to others and to what they did before, while others will stagnate or continue to shrink in the short to medium terms.

5. Where are the Trump tariffs on Russia and Belarus?

6. Any thoughts on how this will impact the American debt to GDP ratio? My thoughts are that america was swinging back up economically which would have brought the debit down. I don’t see how the tariffs will help that balancing act but I don’t know.

7. Who knows. People will continually state in a crystal ball, but the true scary is China. America itself just consumes and honestly won’t change even after this. We may have a hard eight years, but China might have the best decade. Hopefully the EU, Japan, and India can do anything. Wish Russia wasn’t a POS.

Comments are closed.