Announced by Donald Trump, Liberation Day proved to be the beginning of turbulence in planet markets.Source: Wikimedia Commons. Licence — Public domain
The US's imposition of duties on most countries in the planet on April 2 was to be Liberation Day, leading to the reconstruction of American industry. another countries, allegedly robbing America through surplus trade, were to bear the cost of taxation cuts in the US. Trump's economical policy, however, proved unpopular. Most Americans lost religion in his economical talents. There's a spectrum of recession all over the world. Will MAGA impose its economical revolution? What are the consequences of this experiment?
The United States has been the world's largest economy since the early 20th century. Thanks to its favourable position, interior stableness and natural wealth, America has managed to overtake Europe's leading powers in terms of surviving standards and technological progress. planet War II allowed the US not only to avert the fresh symptoms of the large Depression, but besides to dominate the capitalist world. The average white American could number on a much higher standard of surviving than that of his ancestors in Europe. America was an absolute hegemon of manufacture and financial markets.
However, this situation could not last forever. In the post-war period, Western European countries and Japan experienced economical wonders, reaching a comparable standard of surviving with the US. American companies had to face expanding competition. Despite the hard 1970s, full of political and economical turmoil, America has managed to defend its economical position. At the same time, the United States pioneered the improvement of electronics, laying the foundations for future economical successes. Although seemingly perfect trajectory gave hope for a fresh era of American uniqueness, a changing economy did not make fresh opportunities for everyone. As a consequence of neoliberal reforms, globalisation accelerated. full labour communities have lost income by losing to corporations moving production to developing countries. Another leaders of America have never faced the social consequences of this breakdown.
Customs – a wonderful medicine?
Dreaming in American society dissatisfaction with globalisation and increasing social stratification has been successfully exploited by Donald Trump since 2016. His election coalition, based on white working class men and parts of the spaupered mediate class, took control of the Republican Party. Despite 2 impeachments, many trials and the inept fight against the COVID-19 pandemic, Trump managed to return to the White House. In each of his campaigns, the president of the United States promised to reconstruct America to its erstwhile greatness. In 2024 Trump outlined a seemingly clear way to this goal: regaining the position of planet manufacture leader.
The most crucial tool of Trump's revolutionary economy proved to be customs. Although he was a supporter of them already in the 1980s, barely anyone expected a global customs war. Even Trump's first word and the then trade war with China did not prepare the financial markets for the seismic shocks in Washington DC. On 1 February Trump implemented emergency measures, allegedly in consequence to the influx of fentanyl into the US. In fact, however, the legal gap allowed him to start a global trade war without the consent of Congress. Canada (25%), Mexico (25%) and China (10%) were the first victims of the fresh duties. This was contrary to the evidence of Trump's trade agreement with US neighbours from the north and south during his first presidency.
Zero full Game
Trade on the U.S.-ChRL line is the main front of the customs war spoken to the planet by Donald Trump.Source: Wikimedia Commons. licence – Public Domain.
In the following weeks, conflicting signals came from the White House, and among the Americans the first expressions of uncertainty about the legitimacy of the fresh administration policy. Even the worst pessimists, however, were not prepared for the events of April 2. That day Trump announced a tariff package aimed at all the economies of the world, setting out his decision on the Day of the Liberation of America. All countries were subject to 10% of the duty, while those with an excess trade towards the US were "punished" with importantly higher rates. For example, the European Union, including Poland, has a 20% duty, Vietnam – 46% and China – 34%. In the case of the PRC, duties increased to 125% as a consequence of the escalation of the trade war, becoming a de facto embargo.
The markets did not gotta wait long to react. On April 2, the global stock marketplace collapsed – 1 of the biggest losers was Wall Street. Although the situation has stabilised on April 10, following the announcement of a 90-day suspension of duties, the situation of the American economy remains uncertain. In the first 4th of this year, GDP fell by 0.3%, mostly due to the mass accumulation of stocks by companies fearing a global trade collapse.
Trump's trade war is considered the main origin of its decline in support among citizens. any polls indicate that little than 40% of Americans are affirmative about his actions. Even more conservative averaged data presented by Newsweek”, indicate that only 45% of voters support Trump's actions. In March the Trump administration had more supporters than opponents.
Trump's future destiny and his right-wing MEGA revolution will depend on the result of the trade war. The agreement on the UK-US line concluded on 8 May, mitigating part of common trade barriers, is so far the only agreement negotiated by the fresh administration. Meanwhile, in ports on the West Coast, there was a drastic drop in turnover, especially in trade with China. A real hazard of recession remains – both in America and worldwide. The economical effects of Donald Trump's experiments can be felt for a long time.
Oskar KMAK
