US President Donald Trump shakes the economy in the right way with his radical customs policy. Even if he recently weakened customs threats, my experts: the economy will suffer – the only question is how much.
Trump recently rowed back a bit when it comes to rates to China. But the damage has already been done: because the uncertainty that the White House has created is even more harmful than the rates, Wendy Edelberg, scientist at the Brookings Institution, said to the American broadcaster CNN.
Population dissatisfied
Moreover, the American population is not as dissatisfied with Trump’s economic policy as during his entire first term. Only 37 percent of Americans agree, as a Reuters/Ipsos survey shows.
More unemployed and dismissal
The effects of Trump’s customs policy on the US economy can be seen in all corners and the corner. The American Federal Reserve director Christopher Waller, for example, warned of the consequences for the labor market. “It would not surprise me if there were more dismissal and an increase in the unemployment rate in the future,” he told Bloomberg TV.
In the case of higher unemployment, Waller does not want to exclude the interest rates. Then “it is important that we intervene,” he said.
Investors leave the stock market
The effects of the Trump policy are also clearly visible on the stock markets. Global investors pull themselves out of the US stock market at an unprecedented pace, as Reuters reports.
The investors fail to predict the next steps from Trump. “The markets are shocked about the stupid things he will do, and if he doesn’t do them, they are excited,” Justin Wolfers, professor at the University of Michigan, told CNN.
US dollar very weak
The stock markets are not over yet: the US dollar is just as weak than in three years compared to the euro. Due to a decrease in American currency, American goods abroad become cheaper, which could stimulate exports. At the same time, imports in the US are delayed by an aggressive customs policy.
In this way Trump wants to reduce the trade deficit – the difference between import and export. A strategy that assesses many experts as little help.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
