Dear Md Zafar Alam Bhuiyan - I said China is suffering the major consequences but did not say that other countries aren’t suffering. For example, Canada, Mexico, Germany, etc are also suffering from Trump’s actions. Thank you for letting us know about Bangladesh’s leather manufacturers. China actually just introduced new tariffs on USA made leather!

The USA economy is booming and unemployment is around 4% which implies full employMent. China seems to suffer the major consequences.

Since he is having business background and his priority is USA economy first. He is make sure that USA is getting mutual benefits from international trade.

Dear Dr Amir,

1.Thanks for the answer. Not only China, but Bangladesh also suffering the consequence as Bangladesh exports leather and leather goods to China which ultimate market is USA via China. As USA has imposed 15 % tariff on China products than the price of the commodities has a down tern which impact has serious threshold to the Economy & Employment of Bangladesh . There is some portion from world media:

''Since his announcement of new steel and aluminum tariffs, President Donald Trump has argued the move is necessary to safeguard American workers and bring back jobs. But recent data pokes holes in Trump's rationale.

"We want a lot of steel coming into our country, but we want it to be fair, we want our workers to be protected," Trump said Thursday before signing an order on the tariffs.

Other administration officials echoed the argument.

"This is an industry that is in serious condition if you turn to the steel industry since 200,000 we've lost over 50,00 jobs, since 200 we've lost 40,000 in aluminum," a senior administration official said Friday. "So these industries are industries which the president has said we need to be a country, we need to national security, and they are under significant threat."

But Friday's jobs report and long-term labor market data doesn't completely support those arguments.

The overall US labor market continued to improve in February, with 313,000 new jobs added last month. Even industries that Trump says he is trying to protect are seeing strong growth.

Friday's jobs report showed that broad manufacturing employment jumped 31,000 for the month and continues a slow and steady grind upward. Employment in primary metals manufacturing increased by 4,000 from the month before, is up 14,000 in the past year, and is 35,300 above its financial crisis low. Employment in the sector does, however, remain well below pre-crisis levels.''

Why should everything run through Washington or New York in order to be stable and interconnected? The post-Cold War international order evolved when China was weak; when the European Union was in its infancy; when what we used to call the Third World was still uniformly corrupt, poor, and unstable; and when the United States dominated global trade.

U.S. President Donald Trump blew up the post-Cold War world order during brief, contentious meetings at the G-7 summit in Ottawa this weekend. His summit with North Korea, of course, promises more of the same, though at least in a manner that most support. No nuclear war is a widely shared desire; if one had to choose between binaries, a war of words with allies combined with ending the threat of nuclear conflagration with an adversary is a much preferable outcome than kind words with allies combining with a heightened chance of nuclear winter.

Let’s say, however, that Trump has indeed torpedoed decades of assiduous work to build a global economic and political alliance among the world’s largest economies. Even then, the result might not be as bad as one might think.

From: Trump’s Creative Destruction of the International Order

https://foreignpolicy.com/2018/06/11/trumps-creative-destruction-of-the-international-order/

Dear Md Zafar Alam Bhuiyan - I said China is suffering the major consequences but did not say that other countries aren’t suffering. For example, Canada, Mexico, Germany, etc are also suffering from Trump’s actions. Thank you for letting us know about Bangladesh’s leather manufacturers. China actually just introduced new tariffs on USA made leather!

Dear Professor Dr Amir W. Al-Khafaji,

Thanks you sir for you very inspiring and informative answer . I am afraid that the this economic blow and downturn will create a serious bad impact to the world economy which will sustain a long-way. On the other hand, the countries depending on the solely export -import with USA will make a catastrophe even for the dyeing and diminish if there is no alternative.

Anatole Kaletsky writes at The Guardian.

“For the first time since the 1930s, the US has a president who views trade as a zero-sum game.”

Dear Dhiaa Neama Jabbar ,

Yes,

Not only that, he is famous for his barett rather to lead a developed nation in a prospective and a scientific way. I think the famous nation will be in the backward

Mr. Trump can not change the direction of the global economy, which means enhanced integration of the world economy and a new global distribution of labor. Concerning the national economy of the US, the aspirations and expectations will meet empirical reality, i.e. the employment and job market will tell us the truth, in terms of real income and professional education. Since the end of the 1990s, we see a clear decline of real per capita income per year, in the range of 3000-5000$, at least. No data show a reversion of this trend.

Dear Dr Stephen I. Ternyik ,

Yes, Thats true but the main claim against him is the he is stubborn in every-sphere . There are some compromises everywhere but not in Trump's admin, his foreign policy as well as the economy with his neighbors.

I think Sivanathan makes the salient point here: mutual benefits. Many people, and this includes the US press, which has always been very biased when it comes to reporting about Trump, do not listen to what he is saying. The tariffs he imposed, on steel and aluminum, and possibly on other goods being imported into the US from China, are not imposed as a purely protectionist measure. If one listens to his words, even at the recent G7, they are imposed as a negotiating tactic, to make tariffs and other import restrictions fair.

It would be instructive to do some comparisons. The one I know right off the top is import tariffs on cars, which is a big part of the problem.

The US imposes a 2.5% tariff on imported cars and SUVs. The EU imposes a 10% tariff on US cars. China always imposed a 25% tariff on US cars, which was raised to 40% as of this past July. I guess that was "retaliation," because 25% wasn't enough.

As any president should do, he has to worry first about his own country, and he came in wondering why in the world the US has to continue with unfair trade barriers, from trading partners. But you have to listen to his words. And for that matter, Justin Trudeau said exactly the same thing about Canada. He would never do anything to hurt Canadian workers. Which includes, in Trudeau's case, maintaining protectionist tariffs.

Trump is brash and aggressive, which takes polite politicians by surprise. So people tend to ignore what he says, and to make up their own minds as to what is happening.

Md Zafar Alam Bhuiyan

Your question focuses on economic effects. The real economic effects (nationally, globally) are moderate, with respect to our current data; the world economic clock cannot be reset. The political damage is definitely greater, in terms of the greater fools game. Treasury vs. Federal Reserve (pdf) is another hot issue that matters as

@Albert Manfredi rightly points to.

The economic effects of uneven trade barriers are substantial, and this president understands the economics better than most. The US debt keeps increasing, as a result of a persistent outflow of money, to factories which create no immediate revenue to the US treasury.

The trade imbalance is substantial, well above 500 billion USD annually. Just with China alone, the trade imbalance is something like $375B annually. There is no reason to expect the US economy to support the Chinese economy in such a one-sided way.

Dear Dr Albert Manfredi ,

Definitely, the trade imbalance has to face and to make a balance , a closed door policy is not appreciated by any means I think . Bilateral talk and process can ensure situation overcome where the best diplomatic efforts are necessary as like present economic policy of India , China , Japan & Bangladesh.

Thanks

Dr Stephen I. Ternyik ,

Yes, absolutely you have touched the real button. I was talking about the foolishly damaging of politics in cage of the mighty powered nation USA from every corner.

Md Zafar Alam Bhuiyan

Albert Manfredi

Treasury vs. Federal Reserve is a delicate issue and a hot dish; a great deal of economic intelligence will be needed to digest it.

I'm not economist, but I'm not sure that this politic is OK

Mirjana

Dr Mirjana,

Definity his policies and politics are not OK and the American have to suffer century -long for irreparable loss regarding economy, social, cultural and foreign policies .

The policy is not meant, not intended, to proceed this way. The policy is meant to convince trading partners to lower their barriers to trade. Because the ever growing debt is very bad, for the US economy.

Let me give you a simple example. A government should operate like a household, where its expenditures and its revenues are balanced. In times of emergencies, governments can resort to issuing bonds. That's a way for the government to get some quick cash, which it then has to repay with interest, when the bond matures. So, it's a loan. Bonds are not meant to be used on a constant, continuing basis, to pay for everyday expenses.

No household can sustain operating on loans that it cannot repay. They would go into bankruptcy. Instead, governments have this sneaky trick, print more money!

There is no reason to expect the US economy to sustain this regime. Trump will sound aggressive and rude, when he makes these points, and unfortunately that does not promote negotiating or solutions. But let's be clear, his main points are valid enough. There are economists who predict a major market collapse, caused by the ballooning debt. A president is not obliged to ignore these facts. Balancing trade would be one way to start fixing the debt crisis. (Not the only measure, but an important one.)

If tariffs and other trade barriers were balanced, loud complaints against Trump's negotiating approach, these retaliatory tariffs, would be valid. But trade barriers are not balanced. Not even close.

I am in support of fair trade and that is what any serious president should be thinking about when signing bilateral agreements. Although such struggles should be carried out responsibly. You don't fix the mess of the so called previous administration overnight. They left China stealing intellectual property rights and so many inordinate practices for many years while they were busy chasing shadows elsewhere. I do not see a genuine world power in China. This is my personal opinion.

Trump very much understands the US economy and his actions are much accepted by the core Americans. You see he has done worst things in the past and his detractors are committed to sinking him. He has one secret and that is to speak and do what a core American wants which won him the election and kept him in power for 2yrs despite the storms from the daniels. My advice to trading partners or those whose economy directly depends on US economy is not to engage in trade war. Get your policies right. Look inwards and see what you can improve and stop looking for help on things you can fix.

Mr Trump's goal was to make America more Independent and rely less on others. Though achieving that but his method has been so harsh and care less on whom is affected by the policy.

This is a very interesting and important issue that we can not yet answer fully - because the process of changing the global economy is ongoing, and Trump seems to be still unpredictable.

It is certain that he actually got mixed up in the current balance of power, and everything that seemed to be in advance with established tracks was not so obvious anymore. Well, yes, Trump's policy has a huge impact on the world economy.

The economic block imposed by US President Mr.Trump and the addition of taxes on imported goods leads to a situation of economic and political instability, which raises problems between many of the countries.

Dear Dr Joanna Gocłowska-Bole ,

I am sure Trump has to remove the impediments and the economic war if he wants(?) to repair his his image to the Asians. It may be he has no importance for this but it will make difficulties to USA for further diplomatic relations along with other counties with whom China has the strong economic and diplomatic bondage.

Dear Dr Aqeel A Al-Zubaidi ,

Yes, This blockade imposed by the Charlaton president will add a huge miseries to path of USA in future and it may be USA will be alone in its principal but people has to count the woes, I am afraid.