Trump's Tariff Policy Kills Global and American Economy, Says Südwest Presse of Germany
The new tariffs imposed by US President Trump have drawn extensive criticism from German media. The Südwest Presse published in Ulm considers Trump's economic policies absurd. The additional tariffs he levies on the entire world kill both the global and American economies, lead to rising prices, and destroy confidence. All of these are poison for stock prices. However, long-term investors should not panic. Setbacks are part of the stock market. A smart move might be to take advantage of opportunities outside the U.S., such as Europe and emerging markets.
The Frankfurter Allgemeine Zeitung stated that the new U.S. tariffs shocked global financial markets. Its consequences are diverse. Stocks fell sharply, while government bond prices rose and yields dropped. The euro-dollar exchange rate reacted particularly strongly, damaging the dollar's exchange rate. Many people are worried about the future. Few wish to return to the turbulent era of negative interest rates.
WirtschaftsWoche analyzed the impact on retirement savings: Over the long term, broadly diversified investments in capital markets have been rewarding. Trump will also one day become history. But the fear felt by investors when examining their portfolios is real. This fear should not be underestimated. In the U.S., this fear is even more severe. There, retirement plans are more closely linked to the stock market. Six out of ten American workers use some form of corporate pension plan. Employees deposit funds into selected funds and receive subsidies from their employers. Market risks are borne by them. The Wall Street stock market crash has made American workers worry about a significant reduction in their pensions.
The Mark Brandenburg from Frankfurt (on the Oder) found that so far, Friedrich Merz, the leader of the Christian Democratic Union in Germany, has not responded appropriately to America's crazy tariff stick. Everything seems to remain unchanged. This is a mistake! After Germany realized decades later that its development would lead to a substantial reduction in America's contribution to international defense, it should now quickly recognize that free trade will also face the same fate. For Germany, an export giant, this issue should be of utmost importance.
T-Online of Germany stated: Trump almost levies import tariffs on the entire world. Countries face rising consumption prices and slower growth. Some countries have declared their willingness to retaliate – including China, the world's second-largest economy after the United States. Germany is heavily reliant on exports and benefits from open markets. The European Commission is also ready with countermeasures. A global trade conflict may plunge the world economy into a serious crisis.
Original article: https://www.toutiao.com/article/1828623786846208/
Disclaimer: This article solely represents the author's viewpoint.