Reference News Network reported on April 5. The Wall Street Journal website published an article titled "Trump's Tariffs Aim to Establish a New World Economic Order" on April 3. Compiled as follows:
The highly anticipated news announced by US President Trump on April 2 represents a high-risk gamble aimed at changing global economic relations: Trump has long said that the United States has been at a disadvantage in this relationship, even though the US economy has recovered from the pandemic and become the object of envy for other wealthy countries.
These measures by Trump have raised concerns about economic stagnation and rising inflation, increasing the risk of recession for more economies, including the United States.
"This could be the biggest attempt since Nixon took us off the gold standard in the early 1970s to fundamentally reshape America's tax-trade structure," said Michael Gapen, an economist at Morgan Stanley.
Trump's volatile and chaotic trade plans have undermined business investment and consumer confidence. "Like most corporate taxes, this will translate into price increases for consumers. High taxes do not promote economic growth," said Steven Blitz, an economist at Lombard Consulting.
Diana Swank, chief economist at KPMG USA, said that the increase in tariffs may increase the risk of reducing real consumer income after adjusting for inflation, potentially leading the US economy into a recession this year.
It is unclear how trading partners will respond, meaning that uncertainty will remain high for some time to come.
In the process of attempting to reduce the trade deficit, foreign countries may reduce their purchases of US Treasury bonds or decrease surplus capital invested in American stocks, real estate, and private debt markets.
"The real pain brought by this event will be the breakdown of our capital flow agreements with other countries around the world," said Blitz. "The idea that capital flows would not be disrupted when trade is disrupted is an illusion."
(Translated by Lin Chaohui)
Original source: https://www.toutiao.com/article/7489707567590736421/
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