• Global geopolitical series: Trump administration unlikely to bow to international pressure on trade policies

    Source: FxWire Pro - Commentary / 20 Mar 2018 02:12:41   Eastern Standard Time

    The world should brace for tougher trade policies pursued by the United States as the Trump administration is unlikely to bow down to the pressure from its international trade partners, no matter how intense they are. If you are not convinced by the above idea, you need to look no further than president Trump’s tweets on the issue. Here is one that says all,

    “We do have a Trade Deficit with Canada, as we do with almost all countries (some of them massive). P.M. Justin Trudeau of Canada, a very good guy, doesn’t like saying that Canada has a Surplus vs. the U.S.(negotiating), but they do...they almost all do...and that’s how I know!”

    If the United States’ closest neighbor and one of the most trusted partner couldn’t convince Trump otherwise, don’t see other countries and the European Union failing to do so too.

    If you are in search for further confirmation, let’s take a look at the recent G20 that is undergoing in Buenos Aires in Argentina, where finance ministers and central bankers have gathered all around the world.  Many countries have taken up the opportunity of this big stage to criticize the U.S. trade policies. Here is what the EU had to say,

    “The first risk is the risk of inward-looking policies and protectionism,” European Commissioner for Economic and Financial Affairs Pierre Moscovici told reporters after the first day of talks. Protectionism could damage growth, he added. However, the U.S. Treasury Secretary Steven Mnuchin has pushed back saying that the United States is not going to sacrifice its national interest for the sake of making free trade system works.

    Given president Trump’s track record in defying global pressure (Iran deal, Climate agreement, TPP), the world should prepare for tougher trade policies, especially those enjoying higher import revenues from the United States.