It's quite clear that tariffs were introduced by Trump admin to address trade deficits rather than to reduce the other countries tariffs. This means that the biggest risk to US according to Trump administration is creation of a new reserve currency or rather a group of currencies(Like BRICS) that replaces the US dollar and triggers a balance of payment crisis in the US over both its trade and budget deficit. This also means that Trump Admin views creation of such entity as inevitable. US's earlier moves to consolidate dollar's position in international trade via threats also point to the same.
Now that has been said, what's the endgame? This is by any measure a ballsy move since the associated risks with these move. Inflation all over the world being one. Pushing Europe towards China being second. And a consolidation of anti-America alliances being third.
On the flip side, there is no guarantee that USA would lower its tariff just because you lower yours, especially for economies with higher spending power with protectionist measures like Europe. For the world the lesson remains the same as the one in cold war, being the enemy of US is dangerous and being an ally of US is fatal.
Now this is a wild theory, but how about a quid pro quo between Macron and Le Pen. Macron takes care of the accusation so that Le Pen is cleared and NF supports the amendment for increasing the presidential term limits.
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It's quite clear that tariffs were introduced by Trump admin to address trade deficits rather than to reduce the other countries tariffs. This means that the biggest risk to US according to Trump administration is creation of a new reserve currency or rather a group of currencies(Like BRICS) that replaces the US dollar and triggers a balance of payment crisis in the US over both its trade and budget deficit. This also means that Trump Admin views creation of such entity as inevitable. US's earlier moves to consolidate dollar's position in international trade via threats also point to the same.
Now that has been said, what's the endgame? This is by any measure a ballsy move since the associated risks with these move. Inflation all over the world being one. Pushing Europe towards China being second. And a consolidation of anti-America alliances being third.
On the flip side, there is no guarantee that USA would lower its tariff just because you lower yours, especially for economies with higher spending power with protectionist measures like Europe. For the world the lesson remains the same as the one in cold war, being the enemy of US is dangerous and being an ally of US is fatal.
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