The negative impact of trade wars on the world economy could manifest very soon, but in the long run they will have a positive effect on Europe and Russia.
As the Federal Reserve is clearly raising its benchmark interest rate and the U.S.-China trade war is intensifying, anxiety is spreading in Korea.
Trump and his advisers should realize that it is not easy to contain the destruction caused by protectionism to strictly economic areas without its overflowing to other, more dangerous ones.
While retaliatory tariffs may hurt the U.S., the Trump administration thinks it can inflict enough pain on its allies that they will succumb to any U.S. demands. However, in the long run, by creating clearly specious ways to undermine long standing rules, it may well be preparing for its own demise when China and other countries rule the economic roost.
With neither player willing to back down, it is worrisome as to where this game of economic chicken is heading.