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The poor American economy is predicted to suffer greatly due to the tariff policies of US President Donald Trump. In the meantime, it is very difficult to fix everything. Perhaps a new dawn will come for the US economy after all. However, analysts caution that Trump’s position in the tariff negotiations is much weaker than he believes.
Experts point out that the lion’s share of the global economy (85%) is controlled by a handful of countries. In this environment, the world no longer needs to constantly defer to the United States. In the 21st century, America’s share of global goods imports has dropped from 19% to 13%. As a result, many countries can now afford to ignore US demands. "This means that President Trump’s arrogant policy will eventually lead to the humbling of the United States — a country that has long lost its status as the world’s leading producer of goods and services," The Financial Times highlights.
According to analysts, American consumers are bearing the brunt of the inflationary effects of Trump’s tariffs. Other countries, facing demand shocks, can mitigate these failures through looser policies. However, it is much harder for the US to do the same. "In the end, it is the United States that will suffer the most from Washington’s actions," The Financial Times concludes.
Experts also suppose that Trump’s current anti-immigration policies could further worsen the situation. They may undermine US GDP growth, trigger another wave of inflation, and slow down overall economic activity.
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