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DC_Dude

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Dumbass BGOL MAGA still loves this clown.

Tariff war risks sinking world into new Great Depression, International Chamber of Commerce warns​


Summary


Joshua Kirby
Updated Tue, March 4, 2025 at 10:49 AM EST 2 min read
Tariff war risks sinking world into new Great Depression, International Chamber of Commerce warns

The world economy could face a crash similar to the Great Depression of the 1930s unless the U.S. rows back on its plans to impose steep tariffs on imports, a senior official at the International Chamber of Commerce warned.

“Our deep concern is that this could be the start of a downward spiral that puts us in 1930s trade-war territory,” said Andrew Wilson, deputy secretary-general of the ICC, which promotes global business and trade. High tariffs on foreign goods imported into the U.S. in that decade contributed to a damaging global recession. The downturn plunged nearly a third of the global workforce into unemployment and slashed production at heavyweight industrial economies Germany and the U.S. by half, according to research from the International Monetary Fund.

A Canadian coast guard vessel navigates the Detroit River which connects Windsor, Ontario, Canada, and Detroit, Michigan, U.S.

A Canadian coast guard vessel navigates the Detroit River which connects Windsor, Ontario, Canada, and Detroit, Michigan, U.S. - carlos osorio/Reuters

Most Read from The Wall Street Journal​

The likelihood of a similarly severe blow to the global economy is high, Wilson said in an interview Tuesday. “Right now it’s a coin-flip,” he said. “It comes down to whether the U.S. administration is willing to rethink the utility of tariffs.”

His comments come after tariffs of 25% on imports from Canada and Mexico came into effect in the U.S., stymieing hopes of an eleventh-hour reprieve. Fresh duties were also added to Chinese goods sold to the country. Trump has promised to impose similar tariffs on European goods, raising the prospect of retaliation in kind and a global trade war.

“That puts us in a remarkably precarious position that will cloud the global economy for the coming months,” Wilson said.

President Trump was voted into office in November after a campaign centred on pledges to protect U.S. manufacturers by raising the barrier for imports into the country from abroad. Trump has repeatedly pointed to the U.S. deficit in its good trade with many partners, including China and the EU, calling those gaps unfair. But economists warn that a steep rise in import costs could cause a renewed spike in price inflation in the U.S.

“There is a real risk to [American] domestic economy of taking a tariff-led approach,” Wilson said. Many U.S. trade-sensitive stocks suffered sell-offs Monday after Trump reiterated his tariff plans.

Write to Joshua Kirby at joshua.kirby@wsj.com

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DC_Dude

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BGOL Investor


It is no surprise that Trump‘s behavior towards US’ allies especially when it comes to Ukraine has been politically an absolute disaster. Economically, it is equally disastrous. While US defense companies are losing in value in the Dow Jones, European companies are surging by 40%, with no end in sight. We are looking into trillions of Euros or USD in additional funds of which US defense contractors will not see much, thanks to Trump’s wrong decisions.

This applies to security guarantees which were not a side dish but the core why many countries around the globe purchased US hardware. They were literally the reason why some countries preferred to buy American.

Quote from the article:

„Security guarantees are the unbeatable sweetener that Washington has historically used to clinch most deals. Many countries, including a large number in Europe, have bought U.S. weapons precisely because they came with U.S. security guarantees. The guarantees were not just the sweetener: They were at the core of the deal.“

Trump’s first days in office have been an absolute train wreck. If this continues then by the end of this decade the USA will be diminished, politically, militarily and economically.

Full article is highly recommended: t.co/NdiyrfnsOc
 
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