- As we know, the global community is in the midst of an apparent upheaval perpetrated by the idiosyncrasies, whims, and fancies of Donald Trump, the president of the USA, for believing that raising import tariffs would make America Great Again. Ever since assuming the office for the first time in his second term, Trump has gone about ensuring the established international order is not only shaken violently but also causes mayhem across markets. None of the countries is spared from the irrational, illogical, and extremely unpredictable moves of the maverick president who simply seems to possess no control over key matters of global importance. Most intriguingly, his intemperate language increasingly appears to be petulant and bereft of civility as well.
PC: Modern Diplomacy
- The overarching threats and voicing aggressive intent to impose tariffs, as well as treating countries with condescension, voicing takeover bids without nary a care about the internationally accepted norms has only further exacerbated the geopolitical situation world over. And, the less said the better about Trump’s blatantly false peace claims, including repeatedly boasting of stopping India and Pakistan from going at each other full throttle. However, the conflict between Russia and Ukraine continues unabated, as well as several other conflicts around the world. Little wonder, the markets around the world are reacting ominously, with investors pulling out, anticipating the worst. Uncertainty is always bad, and the universe is experiencing it badly.
PC: Share India
- Of course, wars hurt investors in the short term, but equally bad is the uncertainty surrounding us. Worryingly, the US is threatening one and creating the other. Two out of every three Americans are invested in the stock market, and the last thing they need is a president who plays fast and loose with it. But they’ve had one for a year, with three more to go. It’s unlikely that Trump, who sent markets into a funk last April with his reciprocal tariffs and again with his bullheaded maneuvers over Greenland, will turn over a new leaf now. But he should, because none of this is working. Mind you, the tariff war was squarely aimed at China, which just ended the year with a record trillion-dollar surplus. China isn’t affected nor budging to Trump’s threats.
PC: CNN
- Meanwhile, his deal with friend India is stuck, and now he’s riled old allies in Europe over what he calls a piece of ice. The market slump resulted from a lot of uncertainty over Trump’s threats. Would he grab Greenland militarily, or would he prise it out with more tariffs? America trades far more goods with the EU than China, so the 10% tariff threat was bound to be damaging. Thankfully, Trump has retreated, and markets everywhere signalled relief, but doubts will persist. And that could mean less wealth creation for not only those millions of Americans, but also us. America’s spending habits are closely tied to the wealth effect of stocks. Friendly trade is good for all. Wars, whether with boots on the ground or tariffs at ports, are good for nobody. Simple.
