Trump is breaking a lot of eggs; will he get an omelet? From Alasdair Macleod at alasdairmacleod.substack.com:
Japan, South Korea, and China are fast-tracking a new trade agreement. America’s global economic influence will decline and the international role of the dollar with it.
Trump’s so-called Liberation Day last week was a clear statement of intent — the growing 100-year trend of the US intervening in other nations’ affairs is ending. It was this trend which led to America defeating communism and its dollar becoming the unchallenged international currency for international trade.
For now, everyone is concerned with the economic consequences. Will Trump’s tariffs lead to a renaissance for US industry? Or will it lead to trade wars and a slump? In the few trading sessions following Liberation Day, the markets have voted with an emphatic thumbs down.
Ever since Trump campaigned on a tariff platform, I have made my views known and laid down the likely economic and monetary consequences. We must now turn our attention to the geopolitical implications of US autarky. Whether they trade with the US or not, every nation will be considering its future trade alliances, including which great powers will serve their national interests best in future.
Decisions are being taken which will determine the future of every nation, some with clarity and others dithering. These discussions over individual national interests will have been going on away from the public eye at least since the US presidential election last November. And they would have included the consequences for foreign relations.
