- Wed Jul 17, 2024 12:27 pm
#73111
Competitive devaluation and global tariff wars is a potential disaster for the world economy. Inflation and lower growth will be the result. I assume Europe will reluctantly reciprocate. Bad News if they do and bad news if they don’t. UK badly needs to maximise SIngle Market alignment if Trump is returned.
Sen. Steve Daines (R-Mont.) said Monday that the party should have more of a conversation about former President Trump's plan for an aggressive tariff regime
Daines is referring to the already announced plan from Trump for an across-the-board 10% tariff on all imported goods, and a 60% levy on Chinese imports. This will, at the margin, push up prices for the US consumer.
In my sub-heading I refer to a US dollar devaluation policy. This has not been announced but it was only April when Trump's running mate trumpeted the policy:
Trump running mate Vance a supporter of US dollar devaluation - "make it easier to export"
Vance is correct on making exports more competitive. The flip side is it makes imports more expensive for consumers (again, at the margin). https://www.forexlive.com/centralbank/u ... 40715/amp/