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.
<i>The summit between the world's strongest countries will revolve around the tariffs imposed by the U.S. on products originating from American allies, as well as the consequences for the global economy.</i>*
The leaders of the six largest world economies and Russia,** while meeting next Friday in Quebec, Canada, [Read more]
With a calibrated and forward-thinking response to Trump's narrow-minded protectionism, the EU would cement its role as a trailblazer in the quest for more sustainable trading system.