The US President’s position in tariff negotiations is much weaker than he thinks, the Financial Times warned.
It recalled that the rest of the world controls 85 percent of the global economy and should no longer constantly look over its shoulder at the US. In the 21st century, the US share of global imports of goods fell from 19 to 13 percent. Other countries have become much less inclined to accept US demands. This means that the arrogant policy of US President Donald Trump will ultimately result in the humility of the United States – a country that has long lost its status as the world’s largest producer of goods and services.
In addition, it turned out that the inflationary effects of Trump’s tariffs mainly hit his fellow citizens. Other countries facing a demand shock may simply compensate for this with a softer policy. In other words, the US itself will suffer first and foremost from Washington’s actions.
Earlier, a forecast appeared that Trump’s anti-immigration policy could undermine GDP growth, provoke an increase in inflation and slow down economic activity.