Trump's tariffs could redesign worldwide relationships

Trump's tariffs could redesign worldwide relationships

President Donald Trump has repeatedly announced that he celebrates the return of the production facilities to the United States as a success. He praises companies that plan large investments in the manufacture of products, from computer chips to cars, in America.

uncertainty through economic changes

Announcements are made easy. In the long term, the question arises as to why companies and other countries should invest in the United States that turned the global economic order upside down in just a few weeks. The United States, once known as a stable economy and a reliable trading partner, became a source of confusion and doubts shortly after Trump's taking office on January 20th.

The changed trade landscape

Ursula von der Leyen, President of the European Commission, summed it up on Wednesday at an event in Germany: "The West, as we knew it, no longer exists." In other words, the United States is no longer the only commercial power.

The United States are the largest economy in the world with a gross domestic product of almost $ 30 trillion. Nevertheless, China's economy is in second place with about $ 18 trillion, according to the data from the world bank . The total value of the European Union's economy is around 17 trillion euros, which corresponds to about $ 19 trillion.

Effects of the trade wars

"We have 166 members in the organization. The US trade share is 13 % of the world trade. This means that 87 % of the world trade takes place between the other members of the WTO," said Ngozi Okonjo-Iweala, General Director of the World Trade Organization, compared to CNN.

Trump has repeatedly claimed that other countries have “excluded” the United States in recent years, although the growth rates of the Americans were the envy of the developed countries. So far he has 25 % tariffs on aluminum and steel, as well as 25 % tariffs on goods from Mexico and Canada that do not meet the conditions of a free trade agreement, as well as a massive custom of 145 % on Chinese imports and a further 10 % base tariffs on all US imports.

consequences for companies and markets

The fast and frequent changes to customs policy, however, ensure additional uncertainties. These prices and the non -consistent politics could "slow down global economic growth", as Moody’s ratings stated in a current report. "And the inconsistent approach in politics has undermined trust worldwide."

"These are very fundamental political changes," said Jerome Powell, the chairwoman of the US Federal Reserve, at an event of the Economic Club of Chicago on Wednesday. "There is no modern experiences how to think about it."

his statements led to a waste of USAKTIEN markets Economic order.

global commercial relocation

Already, as CNNS Allison Morrow note, companies and individuals are experiencing tangible effects-from chip manufacturer Nvidia to the aircraft manufacturer Boeing as well as consumers who are looking for cheap clothing or cosmetic products at Temu and Shein.

china has diversified its trade relationships beyond the United States. China's exports to the United States fell from 19.2 % of its total exports in 2018 to 14.7 % in 2024, reported Sheng Laiyun, deputy director of the Chinese National Statistics Office, at a press conference.

reactions and new alliances

When a journalist Trump asked on Thursday whether he was worried that China was closer to the US allies, he decidedly rejected this. "No, no," he said. "Nobody can compete with us, nobody."

But China is not alone. Many Canadians have already canceled trips to the United States to protest against Trump's customs policy. Canada's Prime Minister Mark Carney recently emphasized on social media that Canada and Europe work together to strengthen economic relationships.

"At this time global uncertainty, we focus on making our relationship even stronger," added Carney. The Leyen confirmed these statements and found that more and more governments, including Canada, Mexico and India, had expressed the desire to work more closely with the EU.

the way near

"Everyone demands more trade in Europe - and it's not just about economic relationships," she said. "It is also about setting up common rules and creating predictability. Europe is known for its predictability and reliability, which is increasingly considered very valuable."

Christine Lagarde, President of the European Central Bank, called for a uniform Europe before Trump's announced step regarding the so -called "mutual" customs.

"I consider this as a moment when we can decide together to take our fate into our own hands," she said on the radio. "It's a step towards independence."

The reporting on this article was supported by Reuters and CNN journalists Jake McGowan, Bryan Mena, Elisabeth Buchwald, Catherine Nicholls, Juliana Liu and John Liu.