Donald Trump’s ego or Trump’s tower?
It is not an easy task to say which one is higher: Donald Trump’s ego or his Tower in New York. It’s out of question that he is very self-confident and, for that reason, he makes decisions that don’t care about the market or the negative economic consequences they could bring to the American people. Despite his new tariffs for aluminum and steel, he now assumes that a trade war will be good and, of course, the US will win it. He twitted defiantly:“When a country (USA) is losing many billions of dollars in trade with virtually every country it does business with, trade wars are good, and easy to win.” His tone and new measures piss off not only China and Russia, but also Europe and allies, to whom Donald Trump’s words are a threat.
The first bullet in the stock market was fired but Trump, who recently rose up the tariffs to 25 percent on steel imports and to 10 percent on aluminum. The trade movement made by Trump is seeking to boost American steel and aluminum exportations and reduce China importations. The president is doing what he promised during his campaign: America First. Besides keeping US jobs facing cheaper foreign products to protect America imports, Trump’s nationalism is madness.
Trump twitted recently: “Our steel industry is in bad shape. IF YOU DON’T HAVE STEEL, YOU DON’T HAVE A COUNTRY!” Senator Sherrod Brown, a Democrat from Ohio, supported the new tariffs that protect steelworkers who have lived with the fear of losing their jobs. According to Trump’s official speech, low China prices in the market has stroke US steel industry. However, the measure did not only affect the Asian giant but also Canada, the biggest supplier of steel and aluminum of the United State, will see restrictions of their exportations to its closest neighbor.
But Trump declaring trade war had had the first countermeasures from France and Canada that considered it unacceptable. European Commission President Jean-Claude Juncker said to German TV that Europe will change tariffs on Harley-Davidson, bourbon and blue Levi’s blue jeans. On the other hand, Canadian Prime Minister Justin Trudeau said is “absolutely unacceptable”. Even the International Monetary Fund is concern about the trade war unleashed by Donald Trump that it would damage foreign and American economies.
We have no a clue of who’s advising Trump on economic issues or if he is the one who made the decision without any advice. The truth is that every Trump’s new plan is a flub for economy or America’s diplomacy. The new measures have been evaluated for several economists as erratic because not only it increases employment in the steel industry but also lowers the number of customers in auto, oil, beer and canned food industries to the detriment of US economy and labor.
Unquestionably, Donald Trump’s current announcement about a trade war and his forecast of US winning it will be a complete chaos for American trade and economy. It is possible that replies come from a foreign economy that will also protect their economies setting more restrictions and duties to American products. For that purpose, many analyzers hope that the US changes its position and modifies its new policy. Still, Sarah Sanders, White House spokeswoman, said so far the government doesn´t expect to change or modify the new tariffs.
Indeed, American customers should fasten their belts because the war will begin in a few months and the president hopes to be the champion.