Globally connected markets are bracing for potential economic disruption after U.S. President Donald Trump's sudden announcement of sweeping tariffs. Experts warn that these measures might not only boost domestic cost pressures but could also spark international panic.
Peter Baur, a South African economics professor at the University of Johannesburg, cautions that the new U.S. tariff policy presents a significant challenge to South Africa’s economy. "This is a huge concern for us, especially for our steel producers, aluminum production and our motor car exports. It's going to have an impact in terms of job creation and economic growth," Baur explained during an interview with China Media Group (CMG). He also pointed out that American consumers might face rising inflation as the U.S. dollar begins to depreciate against the euro.
Adding to the tension, the U.S. has announced "reciprocal tariffs" on imports from Venezuela along with a 25 percent "secondary tariff" on Venezuelan oil and natural gas. This move has already met strong opposition from Venezuela, Mexico, and others. Daniel Paez, an expert on oil issues, remarked that these policies seem intended to trigger an international strategy of fear, though they could ultimately hinder the advancement of international oil trade.
The ramifications extend beyond trade, as secondary sanctions and the revocation of licenses for several foreign companies operating in Venezuela reflect a broader strategy to prioritize domestic market advantages. As the global community watches closely, many experts question whether such measures will ultimately backfire on the U.S. by dampening economic growth both domestically and abroad.
This evolving scenario serves as a reminder for globally connected citizens and leaders to pay close attention to the interplay between political decisions and economic realities, as the actions of one nation send ripples across international markets.
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Experts on Trump's tariff policy: U.S. is stoking international panic
cgtn.com
