Trump's trade war: Why his tariffs failed

Trump's trade war: Why his tariffs failed

The massive use of tariffs by President Donald Trump, who is financed with her money, has developed over the years and started promising, but collapsed after only a few days. This article is part 4 of a detailed, contemporary view of the first 100 days of Trump's second term.

The signs of an impending economic crisis

When the stock market began to crush the pension accounts like a wheat swath and loudly complained about the risk of ruin, many political observers thought that President Donald Trump would notice. They were certain that he recognized the existential danger that was to raise punishing tariffs to numerous countries and withdraw from his potentially catastrophic plan.

Trump's metaphors and his strategy

In the tenth week of his new term, the 47th President presents his latest favorite picture: International trade is a high -risk card game, and he was the master strategist. Only he knows which countries have good cards and how the operations should be placed. Therefore, he is now putting large sums on these risky bets.

"For decades, our country has been looted by both friends and enemy nations," says Trump in front of a cheering amount of republican VIPs in the White House. There you celebrate your "Freedom Day" -Zölle . Trump proudly shows a diagram that supposedly represents how much every country is willing to pay for access to the American market.

experts warn of serious consequences

experts who have been working in retail for a long time, quickly described Trump's big bet on April 2 as a foolish decision. This could poison the US trade relationships with the benevolent partners he mentioned and give the less friendly competitors the opportunity to take advantage of his wrong decision. Skeptic claims that Trump is on the best way to fail . Trump's reaction to these warnings is a determined look and the explanation that he is not ready to give in.

The serious competition of trade policy

to understand how Trump got to a dangerous point so quickly, it is important to look at what close confidants said about his views. Trump is convinced that the ability to raise tariffs on imported goods represents an almost mythical power with which one can remove trade deficits, stop illegal immigration and control drug trafficking. Apart from military violence, he sees tariffs as the most direct way to bring not only the United States, but the whole world. "I always say that 'tariffs' are the most beautiful word in the dictionary for me, because tariffs make us rich," he said during his inauguration and in the election campaign.

Trump's strategy and their risks

Despite the less encouraging results of his first examination of tariffs, Trump's team believes that it is pursuing a larger, long -term plan. Due to the simultaneous compression of the world markets, the United States wants to dissuade other countries from its protectionist tendencies. Jobs that once migrated to find cheaper workers could return and new factories are to be created. But many economists consider this to be a absurd idea .

Analysts indicate that reality looks much more complicated for many companies. Even after the Covid 19 pandemic, the bid administration brought American production jobs to higher levels than during Trump's first term. In fact, over 20 % of domestic factories say that a lack of Workers is responsible for this.

reactions from all camps

In a broad sense, Trump is right when he says that many of America's once flowering factory cities are in dust and decay, partly because other countries used tariffs to protect their industries. However, there is a lack of valid evidence that would support Trump's conviction that America's future economic fame from the return of its citizens to the assembly ligaments. This could lead to a high financial burden for American consumers.

These concerns are confirmed by estimates that state that the prices for cars and other consumer goods should increase, which is worried about voters. The Yale Budget Lab has predicted that Trump's tariffs could increase the cost of the average American family by over $ 3.800 annually.

an uncertain economic terrain

a few days after these events: it seems that Trump was waiting for a call from China to discuss an agreement. However, the public mood is tense, and the trust of consumers in the ability of its government to keep the economy stable, sinks rapidly. According to a survey by the University of Michigan, consumer confidence has fallen to the second worst time since 1952.

Less than a hundred days after taking office in the second term, Donald Trump put the economic prospects of hundreds of million Americans on his preference for tariffs. The question remains whether he will be able to stop the current spiral that has led to the greatest trade crisis in generations.

The developments are far from over, and the markets worldwide continue to react intensely to Trump's political decisions.