The US president Donald Trump is now considered an important part of the world economy, especially as he controls one of the world’s most powerful nations.
Many countries are now in fear regarding the trump’s new US trade policy and tariffs. In this article, we discuss how Donald Trump affects world trade.
The USA is always in the scene when we go through the most escalating trade events in the world. Among them, the trade tension between China and USA is very debatable. Most countries imposed tariffs for each other like a tariffs competition. Even though there were some negotiations about the US-China rivalry, it was useless.
According to the USA, they imposed those tariffs to make USA products cheaper than Chinese goods. By the way, China was also replied for the USA action by imposing tariffs for USA goods too. According to the IMF, this tariffs competition will lead the world to a dark period of economy.
By the other hand, Donald Trump’s latest targets are India and Mexico. Most recently US president had threatened Mexico to impose tariffs if they do not halt the flow of illegal immigration from Central America across the US Mexican border. By the way, Mexico had to decide to tighten the migration controls.
Mexico is one of the top trade partners of USA and the Mexican economy is based on exports to the USA. If the USA imposed tariffs on Mexico it will definitely hit badly to the Mexican economy.by the other hand Mexico does not want a trade war with the USA and the Mexican president had said that they have a plan to deal with the USA about the tariffs issue.
When we go through India, India is also in the trump’s list. USA had announced to cut off the tariffs free access of India to the US market under the GSP scheme, with the second term of the Narendra Modi. Actually, this is not a good sign for the Indian economy as well as for the newly appointed prime minister. When we go through the US India trade relations India is the 9th largest trading partner in the USA and USA is the second largest trading partner of India. 1.3 billion Population of India is very useful to American businesses such as Amazon, Google, Facebook, Netflix, and Uber.
Most recently, Fox, Disney acquired Hotstar which is India’s biggest streaming platform. By the other hand, all we know that at this time Narendra Modi’s victory is amazing. With this victory, Modi can guide India towards the regional giant. It may be a threat to the US influence in the region. Any way this decision is hurt for both sides and most of the experts say that this should be resolved through negotiations.
However, this is an effort by the US to persuade other countries to follow their agendas. All we know that after the two world wars in world history, most of the countries accepted the interdependency. Even in today, no country can stand alone without the support of the others. By the other hand, the nature of the leaders directly affects the foreign relations as well as the global trade. Through these cases, we can see how the interdependency and the nature of the leaders affect for the world trade.