A Trump Presidency Radically Remake World Trade

 

Tariffs could rise to highest levels since the 1930s. 

Anything from a global trade war to a U.S.-led system against China could be the result.

In his first term as president, Donald Trump resurrected tariffs as a tool of economic diplomacy, regularly deploying them as a lever to extract new trade deals from other countries. The result was a world trading system with a bit more friction, but it remained largely intact.

The free trade consensus that prevailed from 1995 until Trump’s election in 2016 isn’t going to return even if Vice President Kamala Harris, the Democratic nominee, wins. 

She may add to the mix of tariffs imposed on China during Trump’s first term and manufacturing support overseen by President Biden.

But these would represent incremental changes, whereas a re-elected Trump could fundamentally remake the world trading system.

In short, no one knows what Trump has in mind. 

Greg Ip Wall Street Journal 16 October 2024

https://www.wsj.com/economy/trade/donald-trump-election-trade-tariffs-aed6c281


RE: Inga problem. Vi på Marknaden är lika glada ändå.


U.S. trade deficit in August goods narrows to 11.300 miljarder SEK på årsbasis.

https://englundmacro.blogspot.com/2024/09/us-trade-deficit-in-goods-narrows-to-94.html


Tillbaka till Wall Street och Stockholm 17 oktober 2024

https://englundmacro.blogspot.com/2024/10/wall-street-och-stockholm-16-oktober_17.html



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