Trump’s tariff announcement is one of the most significant (if not THE most significant) major political act by a ‘democratic’ leader with global economic consequences that we may ever experience. As a French professor working at Aston University in the UK described the announcement (more or less): “the most economically illiterate speech I have ever heard – full of lies”.
You will see much commentary in the general news media, but I would suggest that the real implications will be easier to see AFTER other countries have reacted and maybe after yet further retaliations from the White House vandal. This is in truth not a policy about global trade, but about raising taxes from anywhere except in the USA to allow the USA to tax its own citizens less. Global bullying and extortion, in short.
No-one will be surprised if global stock markets sell off sharply. The Dollar will likely depreciate too, so not good for UK investors with North American holdings.
I will comment in more detail in a video after a few days gap to allow (I hope) some sort of settled outcome to emerge.
I just took off my Skechers shoes, made in Vietnam and marketed in Europe by a US brand. Already sold at a what is locally a premium price, post tariffs, they likely will not sell at all. What a great opportunity for the Vietnamese to develop their own brands and sell direct into Europe. I already have more than a gut feeling that Trump has pushed Emerging Markets investments right back up to the top of the “Watchlist” selection tree!
The Chinese have been upset about US ‘hegemony’ for years. Trump likely just ended it.
MAGA – make America go away.
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