🇺🇸 What repercussions would Trump's new tariffs have on the global economy?
The 30% tariffs that the President of the United States plans to impose on Mexico and the European Union could affect the stability that the global economy has shown in recent months, with accelerated inflation and little growth (stagflation).
The President of the European Commission, Ursula von der Leyen, stated in a statement that such a measure "would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers, and patients on both sides of the Atlantic."
Analysts consulted by media such as The New York Times warn that establishing tariffs as a trade policy would have a ripple effect on foreign producers who, in one way or another, have navigated economic sanctions with a significant increase in imports at the beginning of the year and delaying adjustments in their workforce.
Precisely, these actions have kept the economy stable and given Trump's advisors reasons to believe both that their measures have kept the country stable and that the catastrophic predictions about inflation were wrong.
However, contrary to what the Republican expects, by activating the tariffs, producers would pass the costs onto their US customers and make drastic decisions in their operations, leading to a stagflation scenario.
"If companies consume more than expected, they will look for ways to cut costs to protect their profit margins, which implies cutting personnel or reducing hours worked," said the Chief Economist for the US at Oxford Economics, Ryan Sweet.