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Washington/Beijing-Former US President Donald Trump’s new tariff policy has disturbed the global economic environment and it is also getting serious consequences on the US economy. The dollar has reached a three -year low of three years compared to the euro, while markets around the world are unstable. China has reacted strongly to Trump’s policy and warned of a joint economic battle with Europe.
Is Trump’s tariff scheme ‘exciting’ for the US and the world?
Donald Trump posted on his social media platform ‘Truth’, saying, “America is doing a great job on its tariff policy. This policy will be exciting for America and the world.” He called it a dynamic economic policy. However, opponents and international economists do not agree with Trump’s claim. In fact, Trump announced imposing import duty of up to 145% on imported products from China, which led to an imbalance in trade. This has led to a sharp decline in the dollar and has increased uncertainty in the US market.
Credit: Social Media
Clear trend of Xi Jinping – Opposition to unilateral policies
Chinese President Xi Jinping reacted strongly to Trump’s tariff policy, saying, “China and Europe should jointly fulfill their international responsibilities and oppose the unilateral, threatening policies of America.” This statement is considered a global objection to Trump’s economic policy. According to analysts, China and Europe together can formulate an independent strategy against the US in global trade.
Tariff War – Now in the counter -phase
After the tariff hike by the Trump administration, China has also increased import duty on US products to 125%. Announcing the Customs Commission of China, China said, “If the US increases the tariff further, it will not have any economic meaning and this action will remain a joke in history.”
China has also filed an official complaint against the US in the World Trade Organization, and is committed to take the matter to the international stage. China’s Ministry of Commerce clearly said, “If someone weakens our interests, we will fight till the end.”
Possibility of global financial crisis
According to international experts, this trade war between the US and China is not only bilateral, but it is also affecting the stability of the global economy. The US was already giving tariff concessions to 75 countries, but its aggressive policy against China has weakened the principles of free trade. Amidst all these developments, the dollar fall and market volatility has raised concerns about the health of the US economy. The new economic equation of China and Europe unitedly opposed the United States can create a major crisis for global trade.
Question mark on US economic leadership
Donald Trump’s tariff policy has questioned America’s economic leadership. Given the dollar fall, global market volatility and China’s strict response, this tariff scheme can now create a major crisis for the global economy. It requires multilateral dialogue and patience to find a solution, otherwise this fight can be known as ‘tariff joke’ in global economic history.