It was not a bluff, the tariffs are here – and this is just the opening of a salvo from an oval office.
The world trading system was not here before. Skating to a wider trade conflict is largely on the cards, as President Trump first prepares similar tariffs against Europe and then universally at a lower level.
But what is important as the actions they take now is how the rest of the world responds.
This in turn requires a verdict on what the president actually tries to achieve.
Trump regularly changes his explanation of tariffs – whether to force diplomatic changes, to deal with trade imbalances or collect significant revenues.
These politics goals cannot be achieved at the same time.
For example, learning from experience Trump’s first term “cinema contract”, Western diplomats have tried to find American goods lists that they could buy more to give the White House some victory.
Europe could say that it increases the purchase of American shipments of liquefied natural gas or weapons or specialized magnets for wind farms.
In fact, it doesn’t matter if these trends were already on the train, as long as he could allow the US president to chalk “victory”.
But is the change in the number of trade deficit here really a goal?
Officially, the explanation of Trump’s move is a punishment for trade in synthetic opioid fentanil, but this is widely considered a legal excuse for “emergency” actions that would usually require a decision in Congress.
Canada signaled that Trump would be a strong approach, the best he was articulated by the candidate that the next prime minister was in the country of Mark Carney.
“We will take revenge … a dollar dollar,” the BBC said, making fun of the fantanic, saying that Canada “would” counteract the abuser “.
This is significant whether Carney will succeed in Justin TRUDEAU and ultimately presidents the G7, which is a group of seven largest “advanced” economies in the world.
As a former Governor of England, Carney testified to Trump on the world stage at G20 and G7 meetings first -hand and made it clear that the American leader only respects strength.
He had a coded warning for any nation that wants to remain calm and not capture the President’s eyes: “Good luck.”
In recent interviews, I have conducted European trade negotiators, they emphasized the cooperation and partnership, as well as contracts with the USA. Asked, they avoided even criticizing even an extraordinary proposal to use tariff against NATO Ally Denmark for the fate of Greenland.
The real question is whether the rest of the world, even tacitly, will coordinate the retaliates of tariffs to, for example, the high political supporters of President Trump, such as Elon Musk, which is a typical feature of previous smaller disputes.
Tesla, a manufacturer of electric vehicles led by a male, warned the influence of Tariff Tit-For-Tat last week.
All of this would be focused on the production of rival courts around the oval office, and the interests in the congress, confirm concerns about the impact on global exports of US factories.
It’s all before influenced by American domestic prices.
This could also come, more larger, applying planned carbon trade tax in different jurisdictions.
Exactly how this is played depends on the perception of how powerful they are now.
Some nations can conclude that there are other opportunities in the world these days.
Since the threats of tariffs are sprayed every day in several directions, the world is located on a untreated territory.
