As Donald Trump and his tariffs trade war escalates, the stock markets have taken a massive hit, and many investors and economists fear that a recession is imminent as shockwaves continue to pound Wall Street.
Given the huge hit to share prices earlier this week, in response to the tariffs, it appears that Justin Trudeau’s comment just last month about Trump’s tariffs being “very dumb” couldn’t ring truer.
Trump tariffs: a week of chaos
This week, Trump threatened that the tariffs could get more vicious for the rest of the world, as he proposed introducing a 200% tariff on EU wine and champagne. He took to Truth Social to express his thoughts on the EU’s retaliatory tariffs which he dubbed (in true Trumpian Language), “nasty”.
His justification for this is that the claims that US trading partners have long taken advantage of the country, and that the tariffs will bring back jobs and help the economy to boom.
However, the reality is that Trump’s tariffs will simply rip up the economy and destroy any hope of the US working with its trading partners, who have now become de facto enemies to Trump’s administration.
The tariffs have already taken a big hit on Canada’s economy, as his steel and aluminium import ones came into effect on Wednesday. It has become evident that Trump wants to take a wrecking ball to not only the US economy, but the centuries-long global trade order shared with its allies.
Not only has he placed tariffs on steel and aluminium but also proposed tariffs to come into effect from 2 April, which will have a devastating impact upon the car industry in Canada – potentially forcing businesses to shut.
The incoming prime minister, successor of Trudeau, and ex-Bank of England boss Mark Carney called Trump’s tariffs an “attack on Canadian workers, families and businesses”.
Carney also promised to continue to fight for the Canadian people against Trump’s devastating economic endeavours. He strongly stated that the US “will pay a financial price for this so big that it will be read about in history books for many years to come.”
Voters are not happy
The fraction and tension between Canada and the US is not only concerning Canadians, but voters too – who are deeply concerned about how they are going to be able to pay their bills, after their horrified reaction to tumbling stock markets which have taken hits to their shares, salaries, and older people’s pockets.
In a recent poll conducted by Navigator Research, 37% of registered voters supported his plan, whilst 41% were opposed to it.
Then, global stock markets fell sharply with the S&P 500 making a sharp downturn from its post-election gains. US retail services have warned that it is “highly likely” that the prices on the shelves will rise. This is due to the 25% duty that came into fruition on exports from Mexico to the US.
This will be disappointing to Trump loyalists who thought their egg prices would reduce. During the election campaign die hard MAGA fans voted for Trump with the misguided and brainwashed belief that he was the answer to the economy.
Even the Trump administration conceded that the tariffs will have implications on the US, as Howard Lutnick told CNBC that “there may well be short-term price movements”.
Global discontent
Not only have American voters expressed extreme discontent, but people across the world have begun to boycott US products, notably Elon Musk’s Tesla. People rushed to put signs up on their car bonnets with the phrase “I bought this car before I knew Elon was crazy”.
Similarly in Canada, consumers have joined the fight against Trump’s tariffs through buying Canadian maple syrup instead of American, as they join the worldwide boycott against Uncle Sam. There has also been a surge in searches on Google titled “Boycott the USA”, which expresses just how discontented the rest of the world is with Trump’s disastrous presidency.
Furthermore, in Europe and other countries websites and apps have been set up which display alternative products compared to US goods, such as “Buy European”, “European Alternatives”, and “Made in Canada”.
Even Trump himself understands the fireball he has caused in the economy. When asked on Fox News about the possibility of a recession, he neither confirmed nor denied that one was potentially on the way, as he responded, “I hate to predict things”.
His rather dizzying attitude to the economy, and policies that he initiates and then retracts, has had a jolting impact on the stock markets around the world, as economists are confused as to how to react to his erratic behaviour.
Trump tariffs are playing with fire
But Trump and his tariffs are evidently playing with people’s businesses and livelihoods and driving consumer confidence into the floor, as people continue to battle and grapple with the cost of living which feels never ending for many.
Trump’s policies will only make this worse, and his classic excuse for when it all goes up in flames will be blaming the ‘deep state’ – but also Joe Biden, a former president who is no longer in charge of the US economy, yet who Trump loves to berate at any given chance.
Professor Larry Sabato, who works at the University of Virginia and teaches politics, said in a response to his consistent blame game of Biden:
Here’s another norm that Trump has exploded. Trump has no limits, and his base lets him get away with anything. So, expect it to continue.
There will come a point, however, when Trump will have to face the consequences of his actions, and a point when he can no longer place the blame on Biden. He will eventually be forced to face the tune of the music within the American public, which at the moment, is very much one of discontent .
Featured image via the Canary
