US Hegemony & Trade Wars

De-Globalization is being driven by the Trump Administration as they impose tariffs on Steel and Aluminum imports from EU, Canada And Mexico (1) (2). Increasing trade barriers between China and the USA are helping China decrease their dependency on US trade (3) (4). India joins in breaking with US-dominance by imposing tariffs on US exports (5).

US debt is at historic highs leading to loss of faith in the dollar and a vulnerable nation(6), and further alienation of trade partners by banning competitors rather than building better products back home (7). US and EU are currently united against Russia and China (8), however, US sanctions against Iran and Russia are more damaging to Europe’s economy and could lead to increasing tensions between the allies (9) (10), and Europe breaking free of Washington’s grip (11).

US is further isolating itself from the global community (12) (13) (14), leading to a potentially unpredictable outcome in the long run (15), however, in the short run, we don’t expect an intensification of the trade war as suggest by more pessimistic analysts (16) also given the matter that most of the current tariff talks have still not been put in place and are more “marketing” than real politics (17). Looking to recent history, the last time punitive tariffs were imposed on American trade partners, it ended up being detrimental to the dollar causing a plunge in the S&P 500 (18).

 

References

  1. Trump Imposes Steel, Aluminum Tariffs On EU, Canada And Mexico

  2. Trump’s Protectionist Follies Threaten a Trade War

  3. China's Plan to End Dependency on American Trade

  4. Why a Trade War With China Isn’t ‘Easy to Win

  5. India Joins the Tariff War: The Party is Just Starting!

  6. USA haben größte Schulden der Geschichte, Dollar könnte Status als Nr.1 Währung verlieren

  7. Bye-Bye Benz: Trump Planning Ban On Luxury German Autos

  8. The USA and the EU quarrel, but remain united against Russia and China

  9. A Failing Empire, Part 3: China & Russia Are Transforming Enemies Into Friends

  10. Trump, Iran und Israel: Amerika hat keine Freunde, nur abhängige Vasallen oder Feinde

  11. Has Europe Rebelled?

  12. What is Donald Trump's position?

  13. Making America Irrelevant Again

  14. It’s Time for America to Cut Loose Our Useless So-Called ‘Allies’

  15. The US Empire Is Acting Like A Desperate, Cornered Animal, Because That’s What It Is

  16. Doug Casey on the Coming War With China

  17. The US-China Trade War Summarized In One Chart

  18. In 2002, President Bush Imposed 30% Steel Tariffs; This Is What Happened Next