For the first time in over a decade there is great potential for global growth. It has taken many years to get the engines warmed up, but we are finally there. This is important, as it seems the only driver to create some wealth and hopefully make some in roads to pay off some of the enormous debt that has mounted worldwide. I do realize the numbers are mind boggling, but then just under ten years ago the world was facing a devastating financial crisis, that would have crippled economies worldwide. Don’t forget that.
Yet, the talk of taxes on trade will have far-reaching effects, and won’t likely balance out trade. In fact, trade may just slow down or disappear altogether, unwinding much of the trade that emerged from free trade agreements from 20 years back. Maybe the terms were unfair to the US, I really don’t know for sure.
But I do know that taxes will have an overall negative impact down the road, and with worldwide growth potential highly probable, this is no time to mess around with tariffs that won’t get the job done. There is a different approach, but we will see where this one leads.
I can’t say this inspires growth in the long run, but maybe it’s just rhetoric. If that’s the case, perhaps just the threat of tariff taxes from this administration will be enough to start a negotiation.