Trump rightly thinks that tariffs on world will increase sales of American goods but America is not able to produce many things as well. Tariffs mean those things are becoming tariff % expensive.


Those expensive things will result in higher inflation in America. Now, Global markets are backed by Dollar.

Higher inflation in America means, higher interest rates on dollars.

Higher interest rates mean, lower investments, slow down in the economy. Lower global sales.


These slowdowns coupled with tariffs by other countries, like China, EU to American products will make inflation and interest rates higher worldwide.

This can result in an economic crisis or recession.

Global Stock markets are already crashing anticipating this.
#Binance #PriceDrop