Trump's tariffs 'risk severely shaking the global economy'
The tariffs that the American president is imposing on the rest of the world will be nothing more than a "Pyrrhic victory," warns this columnist for the daily newspaper "Le Temps." In the long term, they will have harmful consequences for growth. This will inevitably have repercussions in the United States.
While the very harsh verdict fell [this Friday, August 1 ] for Switzerland, with 39% import taxes, the recently announced trade agreements between the United States and other regions have often been presented as victories for the American president and defeats – sometimes humiliating – for the rest of the world (we have read this a lot about Europe).
These deals would demonstrate that the Republican can impose his will on his partners and that his America First agenda is working. After all, inflation hasn't skyrocketed in the United States, despite the introduction of tariffs on imported goods. Growth is still holding up in the world's largest economy.
But the trade war launched by Donald Trump is already having negative effects, less visible but not necessarily less harmful in the long term.
Tariffs primarily threaten growth. Logically, when faced with suddenly higher prices, consumers react immediately and stop spending or switch to cheaper products. Economists speak of "demand destruction." Since demand is the main driver of the American economy, it's easy to see the kind of sword of Damocles hanging over it.
Courrier International
