How Trump’s Trade Policies Could Reshape the Global Economy

Aggressive Trade Tariffs: Implications for China and Beyond

The world economy will experience disruptions if Trump wins re election.

The potential re election of Donald Trump for another term as the President of the United States and his plans to impose tariffs on imported goods from countries might lead to major disturbances in worldwide supply networks as reported by Kommersant referencing experts, from the Institute of International Finance (IIF) based in Washington.

The experts report called "Global Implications of Trumps Trade Agenda Update" cautions against a global economic growth deceleration should the Republican candidate secure another term in office citing Trumps proposal to levy tariffs ranging from 10 to 20 percent, on all foreign goods entering the United States as a key factor influencing this prediction.

Aggressive trade policies are primarily directed towards China.
The experts characterize this situation as confrontational. Foresee China bearing the brunt of the impact the most severely hit country by far.The President has consistently mentioned his intention to implement a 60 percent tariff on products coming in from China—an action that could potentially decrease China’s growth by 1. 5 To 2 percentage points.This economic strategy would also have effects on Germany and Japan due to their significant dependence on exports, to the United States.

Impact on Key U.S. Trade Partners: China, Germany, and Japan

Considering Options; Exploring Less Extreme Solutions
The IIF is looking into two situations that involve less extreme trade restrictions.

A middle of the road strategy would involve targeting industries by placing tariffs on cars and high end products from the EU or on tech and machinery, from Japan and China.
Taking a stance by refraining from imposing limits on crucial imports such as advanced technology goods helps protect the worldwide economy from significant harm while simultaneously increasing expenses, for sectors impacted by tariffs.
Potential Impacts Within the United States
Trump’s economic strategies might negatively impact Americans as well as stated by The Wall Street Journal that experts anticipate an increase in inflation within the U.S during a potential second term for Trump due to factors, like elevated import tariffs and efforts to decrease interest rates by pressuring the Federal Reserve alongside deportations of migrants.

Alternative Scenarios: Moderate Approaches to Trade Barriers

The significant impact of Trumps trade policies on the economy is evident, through the mix of international and domestic challenges they pose.