Trump’s message to other countries, freebies now over
Donald Trump has finally charged his friends and enemies with a stick and levied their exports. They believe that these countries have been taking advantage of American generosity for a long time. So in one stroke, he overturned the American trade strategy, which has been a promotional-maker of free trade and open global economy since the Second World War. The latest conservationist declaration is also to satisfy Trump’s political mass base. His supporters are opposed to globalization. They believe that manufacturing sector jobs went out of America due to liberal trade policies. On the other hand, economist is considering this step as the beginning of the new trade war that can cause recession.
With these charges, Trump has sent a message to the world that the freedom period is over now. What color this gambling will bring will be a matter of view. Under the pressure of this shocking decision, whether countries with heavy trade deficit countries with the US will be forced to make a fresh bilateral trade treaty.
There are also negative aspects of this decision. For example, many countries will not accept it like this. China, Canada and EU are ready to retaliate. Although Canada and Mexico are not so affected by new charges, they have already been loaded with considerable fees. The 25 per cent fee imposed on Mexico on the export of all cars can prove to be destructive for him as there are big car manufacturers. Elections are to be held in Canada on April 28 and Prime Minister Mark Karni’s Liberal Party is leading the Conservative Party in Opinion Poll. This edge is the result of Prime Minister Karni’s refusal to bow down to the American threats, so it is very possible to take some steps against the charges to maintain it. Canada has already declared a 25 per cent fee on US exports worth $ 155 billion. This announcement was made at the beginning of the year but it is now time for it to be implemented. As far as India is concerned, the new fee policy can have a mixed impact. Many people hope that the much awaited second round of economic reforms will now come.
American consumers will face inflation due to increase in fee. If companies also promise to invest in America, then their plans will take time to realize. That is, the creation of employment will also take two to four years. Due to this, the step of increase in fees is political risk. People are already affected by employment cuts, which goes to Allen Musk who has pruning heavily in bureaucracy.
In an interview to CNn, former Director General of World Trade Organization, Paskal Lami, believed that Trump wants to deal with other countries by keeping a ‘gun in his pocket’. According to Lami, the EU should now look for new alternative markets to deal with American charges.
Trumpat’s fee-war will also affect America’s global image. The global power structure may have a long -ups. Joanna Spear, Professor at George Washington University, says, “My thoughts will now be small scope of influence in exchange for American influence on the world alone.” There will be some benefits to China, but the western countries will now be able to trade more with each other.
Many experts say that Trump is a nineteenth-century thinking when the world was divided into small impact areas. In one such world, they want to maintain the dominance of America so that they can capture Greenland if needed. The remaining two global poles are China and Russia. Many Western analysts believe that the Trump administration sees the world in this form, although it is just speculation and nothing is clear. It is so clear that Vladimir Putin and Xi Jinping, unlike, believe in using the US economy and fees as lump tools instead of Trump, the US Army.
At the moment, the whole world is going through an uncertain situation and no one knows what will happen, although the global economy is talking about the loss of all where many countries will have to face Trump’s fee, including the people of America, of course.
