Ready for a deep analysis of the current situation? Then 🚀 🔥🔥🔥
Part I.
1. What will happen if the most economically developed countries continue to raise tariffs on goods?
Situation analysis:
Tariff increases are a manifestation of protectionism, where the state tries to protect its domestic markets and producers. Countries like the USA, EU, China (despite the status of 'developed/developing'), have already employed similar trade policies, especially in conflicts like 'USA-China' or during sanctions against Russia.
Possible consequences:
1. Global economic slowdown:
• Tariff increases lead to a decrease in global trade volumes.
• This impacts supply chains, especially in the technology sector.
2. Inflationary pressure within developed countries:
• Import goods become more expensive.
• If domestic production is unable to replace imports — a deficit arises and prices rise.
3. Escalation of trade wars:
• Partner countries respond with symmetric tariffs.
• This can destabilize international economic ties and trigger a recession.
4. Decrease in investment rates in developing countries:
• Lower demand from wealthy countries reduces export revenues for less developed economies.
• They lose incentives for modernization, negatively affecting global stability.
Conclusion 1:
If economically developed countries continue to raise tariffs, it will lead to a global economic slowdown, inflationary pressure, and possible recession, especially in vulnerable regions. Protectionism disrupts trade balance, which is critical for the modern interdependent economy.
The continuation will follow...