Eve is here. I feel like I’m late in writing an opinion on Trump’s victory, but with the tidal wave of commentary on it, I’d like to write something that isn’t a rehash of a more or less widely accepted view. That’s what I think. So please be patient.
In the meantime, the following posts provide high-level information about President Trump’s plans to widen and expand the scope of tariffs and how it could affect the United States and its trading partners. It provides useful information.
Oddly enough, few commentators have mentioned that one of the reasons President Trump likes tariffs is because he can impose them without Congressional approval…But only if it can be characterized as addressing a threat to national security.. If President Trump begins to impose widespread authority, will anyone see fit to challenge that authority?
However, the author also emphasizes that tariff increases have become a bipartisan issue, and that Harris likely would have also raised tariffs. So Trump may just end up speaking louder and sooner about their addition than Team Dem.
This passage addresses another pressing economic problem: the Biden administration is running a very large budget deficit, and if President Trump wants to have a more balanced budget, as he has vowed to do, he must cut spending. It will slow down the economy and, in addition to the impact of tariffs, will also increase imports from trading partners. Let me tell you, President Trump may follow President Reagan’s example by cutting tax revenues without making the spending cuts he so loudly promised.
Just to be clear, deficit spending is done with an understanding of the constraints of the real economy and how federal efforts can increase economic capacity and pay for itself through increased production. For example, I don’t think deficit spending is a bad thing. None other than hardcore neoliberal Larry Summers found that infrastructure spending generates as much as $3 in GDP growth for every dollar spent. Given the poor state of America’s infrastructure (including its lag behind global broadband standards), it seems like there’s a lot to be done, if we’re willing to do it.
Author: Renaud Foucart, Senior Lecturer in Economics, School of Management, Lancaster University. It was first published in conversation
Donald Trump’s victory in the 2024 election and his threat to impose tariffs on all imports into the United States highlight important issues for the global economy.
The US is a technology powerhouse and spends more than any other country Research and development and more Nobel Prize wins more than all other countries combined in the past five years. Its invention and economic success envy of the earth. But the rest of the world needs to do everything in its power not to rely too heavily on it.
And even if Harris had won, the situation wouldn’t have been much different.
Donald Trump’s “America First” approach was actually a bipartisan policy. At least since former President Barack Obama’s policies, energy independencethe United States has continued a largely inward-looking quest to maintain technological superiority while ending the offshoring of industrial jobs.
One of the major choices President Trump made in his first term was to force U.S. consumers to accept higher prices in order to protect domestic producers by imposing high tariffs on nearly all trading partners. Ta.
For example, President Trump’s 2018 tariffs on washing machines around the world mean U.S. consumers are paying for them. 12% or more For these products.
President Joe Biden – Indeed more polite How – then increased Part of Trump’s tariffs: up to 100% on electric cars, up to 50% on solar cells, and 25% on batteries made in China.
In the climate emergency, this was an obvious choice to delay the energy transition to protect U.S. manufacturing.
Biden on the other hand signed the armistice By starting a subsidy competition with Europe on tariffs, it has probably started an even more harmful battle.
For example, the US Inflation Control Act includes: USD 369 billion Subsidies for areas such as electric vehicles and renewable energy (£286bn). and, Chip method It has pledged US$52 billion in subsidies for the production of semiconductors and computer chips.
China, Europe and the rest of the world
This American industrial policy may have been inward-looking, but it has had a clear impact on the rest of the world. After decades of growth based primarily on exports, China now has to deal with its huge problems. industrial overcapacity.
The country is currently trying to further encourage domestic consumption and to diversify that business partner.
Europe spends a lot of money despite extremely tight budget constraints in the subsidy competition. Germany, a country facing slowing growth and major national questions industrial modelis committed to providing services comparable to U.S. grants. 900 million euros It has invested £750 million in Swedish battery manufacturer Northvolt to continue producing it domestically.
All of those subsidies are have a negative impact on the world economy And it could easily have financed urgent needs such as electrification. whole continent of africa Comes with solar panel and battery. Meanwhile, China has changed america and europe Pursuing its own interests in natural resources, it is Africa’s largest investor.
President Trump’s next appointment may be an opportunity to revise our thinking.
For example, some argue that the full-scale invasion of Ukraine and the ensuing thousands of deaths and energy crisis could have been avoided if the Biden administration had been more clear with Russian President Vladimir Putin about the consequences of the invasion. There may be. And before the war, it provided Kiev with modern weapons.
But the blame lies primarily with Europe. Unsurprisingly, the strategic problem of over-reliance on Russian gas is one President Trump has had. A clear warning to Germany About what happened during his first mission.
The path forward is clear. Europe could help solve China’s overcapacity problem by negotiating an end to the tariff war on Chinese technology. solar panel and electric car.
In return, Europe will regain some sovereignty by producing more of its own clean energy instead. Import record amounts Liquid gas from the United States. Also, learn some things Freed from production with Chinese companies, China would be able to leverage its technology. Huge influence over Russia To stop the invasion of Ukraine.
The European Union may also do more on what it does best: signatures. trade agreementand using them as a method, reduce carbon footprint all over the world.
This is not just a story of Europe or China. After many decades continuous improvement In every major aspect of human life, the world is moving backwards.
The number of people facing hunger is increasing and we are back to where we were before. 2008-2009 level. Wars are raging in Gaza, Sudan, Myanmar, Syria, and now Lebanon. never seen so many in the world civilian casualties Since 2010.
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The world is isolated and America won’t come Please save.
We don’t know what will happen to the United States. Most likely, Trump’s return will largely be a continuation of the past decade. perhaps exorbitant tariffs Or destroy the institutions that made the United States what it is. economic powerhouse The US economy will become less relevant. But this is what Americans have chosen and what the rest of the world simply has to accept.
In the meantime, the only thing the world can do is learn how to work together better and not become too dependent on each other.
