Reference News Network reported on April 23 that the Financial Times website published an article titled "The Biggest Victim of Mistakes in the US Economy is the United States Itself, Not Others" on April 21. The author is Chris Giles. The content is compiled as follows:

"When America sneezes, the world catches a cold." This saying should no longer apply. It is said that this proverb was originally used to describe France in the Napoleonic era, but it lost its meaning after the Battle of Waterloo. Donald Trump is about to destroy its current version.

In foreign policy, when the US president chooses not to act as a reliable ally who can provide trustworthy security guarantees, it will be a huge shift. This will inevitably lead other countries to be less willing to comply with American demands.

And economically, for a country that has long lost its status as the largest producer of goods and services in the world, arrogance is most likely to eventually force it to bow its proud head.

This is not only because Trump's tariff negotiation chips are much weaker than he imagined, but also because countries around the world control 85% of the global economy and no longer need to follow American orders. The White House may try to create an impression of American dominance in the global economy, forcing other countries to comply out of fear of consequences. But as long as calm heads prevail in global trade, those impulsive individuals in the White House will not dominate the situation.

America is a sovereign nation that can freely disrupt its role within the global economic rule system it created. However, by setting high tariffs and reversing them, spreading panic among immigrants, and weakening the effectiveness of the U.S. government, its policies will have the most severe impact domestically.

The stagflationary shock causing significant commercial uncertainty and rising prices of imported goods has put the Federal Reserve in a dilemma. It struggles to determine whether it should worry more about rising unemployment or inflation. The inflationary effect of Trump's tariffs primarily affects the U.S. Other countries facing demand shocks can offset this impact through loose monetary policies.

Of course, there will be some collateral damage. Countries with high export-to-GDP ratios and where the U.S. is an important trading partner—such as Canada and Mexico—are more vulnerable. Smaller economies exporting basic commodities like food and T-shirts to the U.S. may also suffer serious setbacks.

But when economists calibrate their models and examine potential realities, it seems that America appears relatively fragile.

This week, finance ministers and central bank governors will gather in Washington for the spring meetings of the International Monetary Fund and the World Bank. There is no doubt that the U.S. will not be welcomed at this year's meeting. The only question is how polite other countries will remain. However, America's economic problems are its own issues. When it picks up stones to throw at its own feet, the U.S. will be the one to get hurt and bleed. (Compiled by Wang Diqing)

Original source: https://www.toutiao.com/article/7496389630787469863/

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