So, papa Trump is trying to bully other countries to back USD.
Let’s take a look on the economic fallout?
1. Global Trade Disruptions: These tariffs will prompt retaliatory measures from major trading partners like China, India, and Brazil, leading to a steep decline in global trade volumes. For instance, U.S. trade with China alone amounted to over $250 billion in 2023, and a 100% tariff would likely devastate these economic ties. Of the US don't sell, someone will.
2. Rising Inflation and Consumer Costs: If the tariffs were applied, many goods currently imported from nations abandoning the dollar would see drastic price increases, leading to heightened inflation. This is especially concerning given the U.S. economy's reliance on imported goods. Higher production costs for businesses could also result in layoffs and reduced consumer spending.
3. Accelerating De-Dollarization: Rather than securing the U.S. dollar's dominance, these tariffs could hasten the trend of de-dollarization, as nations might aggressively seek alternatives to avoid punitive measures. Countries like China and Russia have already begun to establish alternative financial systems, and Trump's proposal may only push others in this direction faster.
4. Economic Slowdown: In the long run, tariffs of this magnitude could reduce U.S. GDP growth by up to 0.8%, according to economic projections, exacerbating an already fragile global economic recovery. Domestically, this could lead to higher unemployment rates and a slowdown in industrial output as companies face higher input costs and reduced international demand.
While Trump's tariff proposal is dreams of protecting U.S. economic interests, it risks triggering a series of retaliations, inflationary pressures, and a further erosion of the dollar's global dominance, potentially leading to significant economic challenges for the U.S. in the next decade.
Since his speech is purely emotional. He is trying to pray on the average American violence, xenophobia and ignorance to get elected.
